N-CSRS

Semiannual Report | June 30, 2019

Schwab Prime Money Funds

Schwab Value Advantage
Money Fund^®

Schwab Retirement Advantage
Money Fund^®

Schwab Investor Money Fund^®

New Notice Regarding Shareholder Report Delivery Options

Beginning on January 1, 2021, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary (such as a bank or broker-dealer). Instead, the reports will be made available on a fund’s website www.schwabfunds.com/schwabfunds_prospectus, and you will be notified by mail each time a report is posted and the mailing will provide a website link to access the report. You will continue to receive other fund regulatory documents (such as prospectuses or supplements) in paper unless you have elected to receive all fund documents electronically.

If you would like to receive a fund’s future shareholder reports in paper free of charge after January 1, 2021, you can make that request:

• If you invest through Charles Schwab & Co, Inc. (broker-dealer), by calling 1-866-345-5954 and using the unique identifier attached to this mailing;

• If you invest through another financial intermediary (such as a bank or broker-dealer) by contacting them directly; or

• If owned directly through a fund by calling 1-800-407-0256.

If you already receive shareholder reports and other fund documents electronically, you will not be affected by this change and you need not take any action.

Schwab Prime Money Funds

From the President

Jonathan de St. Paer
President and CEO of
Charles Schwab Investment
Management, Inc. and the
funds covered in this report.

Dear Shareholder,

Amid the numerous headlines catching the attention of investors in recent months, one big story has been a substantial shift in interest rate expectations. As late as the end of 2018, most observers were predicting that the Federal Reserve (Fed) would continue to raise rates in 2019. How quickly things change. By June 2019, the outlook had reversed entirely as Fed policy makers cited uncertainty about the economy. Although the Fed left interest rates unchanged at their June meeting, markets were signaling that rates will likely be cut by the end of this year. (Following the end of the period, at their July meeting, the Fed cut interest rates by 0.25%.)

It’s a good reminder that the direction of interest rates is never a certainty, even if an economist or analyst might seem very confident when discussing the matter on any given day. While investors in money market funds should understand the impact of a potential rate cut—generally, when interest rates fall, money market funds deliver lower yields—the average 7-day yield for U.S. taxable money market funds remained relatively attractive at just above 2% as of the end of June. Whether as a temporary place to hold cash or as a dedicated asset class, we believe that money market funds can play an important role in an investor’s portfolio.

At Charles Schwab Investment Management, we’re committed to providing a straightforward lineup of core investment products and solutions that can help investors pursue a strategy that’s right for their needs. Designed to offer stability of capital, liquidity, and current income, the Schwab Prime Money Funds are a prime example of this approach. The funds are actively managed, benefitting from extensive credit research and analysis that aims to reduce portfolio, credit, and interest rate risks. Our team also evaluates stress tests designed to help them understand various scenarios, including the impact of factors such as decreases or increases in short-term rates, widening of credit spreads, and downgrades or defaults among issuers. And, with no investment minimums on all of the Schwab Prime Money Funds, except the Schwab Value Advantage Money Fund – Ultra Shares, the funds can help investors realize the benefits of professional money management without the typical barriers to entry.

Since we launched our first funds more than 25 years ago, Charles Schwab Investment Management has grown to become one of the largest providers of money market funds in the country—all while staying focused on what investors need and want to help them achieve long-term success. And, although we can’t take all of the surprises out of investing, we can continue to work hard to provide straightforward products and solutions that can help investors build a portfolio that is positioned to help weather the inevitable market ups and downs.

Thank you for investing with Charles Schwab Investment Management, and for trusting us to help you achieve your financial goals. For more information about the Schwab Prime Money Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our website at www.schwabfunds.com. We are also happy to hear from you at 1-877-824-5615.

Sincerely,

“ And, with no investment minimums on all of the Schwab Prime Money Funds, except the Schwab Value Advantage Money Fund – Ultra Shares, the funds can help investors realize the benefits of professional money management without the typical barriers to entry.”

Management views may have changed since the report date.

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Schwab Prime Money Funds | Semiannual Report

Schwab Prime Money Funds

Fund Management

Linda Klingman, Vice President and Head of Money Market Strategies, leads the portfolio management team of Schwab’s money market funds. Ms. Klingman also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 1990, Ms. Klingman was a senior money market trader with AIM Management. She has managed money market funds since 1988.

Michael Lin, Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Mr. Lin has been a portfolio manager with CSIM since 2006, and also worked in CSIM’s Fund Administration group for nearly four years, where he focused on security pricing and valuation of Schwab Funds. Prior to joining CSIM, he spent three years at American Century Investments, most recently as a senior trader of the taxable money market funds.

Jonathan Roman, Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Mr. Roman has been a portfolio manager with CSIM since 2010, and has held a number of positions at the firm since beginning his tenure in 2005. In 2009, he joined the Portfolio Management group as a Trader, and prior to that he worked in the Portfolio Operations and Analytics group providing trading support to the taxable money market desk.

Jonathan Feske, CFA, Portfolio Manager, is responsible for the day-to-day co-management of the funds. He previously was responsible for credit and investment research for global banks for CSIM’s taxable bond and money funds. Prior to joining CSIM in 2011, Mr. Feske was a high-yield bond analyst for more than two years at Miller Tabak Roberts Securities, a boutique corporate bond broker-dealer, which is now part of GMP Capital. He covered both U.S. and emerging market credits, focusing on distressed situations in various industrial sectors. Previously, Mr. Feske was employed in the securities industry as an equity trader for three years.

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Schwab Prime Money Funds | Semiannual Report

Schwab Value Advantage Money Fund

The Schwab Value Advantage Money Fund (the fund) seeks the highest current income consistent with stability of capital and liquidity. To pursue its goal, the fund invests in high-quality, short-term money market investments issued by U.S. and foreign issuers. Examples of these securities include commercial paper, certificates of deposit, repurchase agreements, variable- and floating-rate debt securities, and obligations issued by the U.S. government, its agencies, or instrumentalities. For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Market Highlights. During the six-month reporting period ended June 30, 2019, demand for taxable money market funds rose, aided in part by attractive U.S. short-term bond yields relative to bank deposits, an inverted yield curve, and volatility in financial markets. Following four 0.25% rate hikes in 2018, the Federal Reserve (Fed) held rates steady at its meetings in January, March, May, and June 2019. With the Fed having declared its intent to remain “patient” earlier in the reporting period, by June markets began to expect possible rate cuts later in 2019 due to increased uncertainties regarding the global economic outlook and the Fed’s intent to monitor incoming information in order to sustain U.S. economic expansion. The federal funds rate ended the reporting period in a target range of 2.25% to 2.50%. Equity markets recovered from December’s sell-off, with major market indices achieving multiple record highs during the period despite ongoing trade tensions and signs of slowing global growth.

Trade tensions, global growth fears, and expectations for policy easing steered investors to less-risky assets, driving a rally in the bond market during the reporting period and pushing yields lower. (Bond yields and bond prices move in opposite directions.) The U.S. bond yield curve flattened and subsequently certain parts of the yield curve inverted as short-term yields exceeded long-term yields, raising recession concerns. The yield on the 3-month Treasury bill, which typically responds to changes in the federal funds rate, fell from 2.45% at the outset of the reporting period to 2.12% at its close.* Longer-term yields, which are generally driven by inflation expectations and growth forecasts, also declined with the 10-year Treasury yield falling from 2.69% to 2.00% over the reporting period.*

Outside the U.S., most central banks maintained accommodative monetary policies. The European Central Bank has held interest rates unchanged since early 2016 and in June announced that it would likely maintain those rates through mid-2020. Also in June, the Bank of Japan upheld its short-term interest rate target of –0.1%, also unchanged since 2016, and maintained its pledge to keep interest rates extremely low for an extended period. The Bank of England held its key interest rate steady at 0.75% at its June meeting and warned that it expected growth to be flat in the second quarter of 2019 due to global trade tensions and the perceived likelihood of a no-deal Brexit.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on liquidity and stability of capital as market conditions evolved, while all issuers and regions in which the fund invests continue to undergo a rigorous credit review process and ongoing monitoring. In response to the Fed holding short-term interest rates steady and the possibility of rate cuts later in 2019, the fund’s weighted average maturity (WAM) increased, beginning the period at 27 days and ending at 39 days.

*	Data source for yields: U.S. Department of the Treasury

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

39 Days

Management views and portfolio holdings may have changed since the report date.

¹	Maturity shown is the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Prime Money Funds | Semiannual Report

Schwab Value Advantage Money Fund

Performance and Fund Facts as of June 30, 2019

The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than performance data quoted. To obtain more current performance information, please visit www.schwabfunds.com/schwabfunds_prospectus.

Seven-Day Average Yield Trend for Previous 12 Months

Seven-Day Yields

The seven-day yield is the income generated by the fund’s portfolio holdings minus the fund’s operating expenses. The seven-day yields are calculated using standard SEC formulas. The effective yield includes the effect of reinvesting daily dividends. Please remember that money market fund yields fluctuate.

	Schwab Value Advantage Money Fund
	Investor Shares	Ultra Shares
Ticker Symbol	SWVXX	SNAXX
Minimum Initial Investment¹	None	$1,000,000
Seven-Day Yield (with waivers)²	2.20%	2.35%
Seven-Day Yield (without waivers)²	2.12%	2.27%
Seven-Day Effective Yield (with waivers)²	2.23%	2.38%

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Please see prospectus for further detail and eligibility requirements.

The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab Prime Money Funds | Semiannual Report

Schwab Retirement Advantage Money Fund

The Schwab Retirement Advantage Money Fund (the fund) seeks the highest current income that is consistent with stability of capital and liquidity. To pursue its goal, the fund invests in high-quality, short-term money market investments issued by U.S. and foreign issuers. Examples of these securities include commercial paper, certificates of deposit, repurchase agreements, variable-and floating-rate debt securities, and obligations issued by the U.S. government, its agencies, or instrumentalities. For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

*	Data source for yields: U.S. Department of the Treasury

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

45 Days

Management views and portfolio holdings may have changed since the report date.

¹	Maturity shown is the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Prime Money Funds | Semiannual Report

Schwab Retirement Advantage Money Fund

Performance and Fund Facts as of June 30, 2019

Seven-Day Average Yield Trend for Previous 12 Months

Seven-Day Yields

	Schwab Retirement Advantage Money Fund
Ticker Symbol	SWIXX
Minimum Initial Investment¹	None
Seven-Day Yield (with waivers)²	2.19%
Seven-Day Yield (without waivers)²	1.96%
Seven-Day Effective Yield (with waivers)²	2.21%

Please see prospectus for further detail and eligibility requirements.

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Schwab Prime Money Funds | Semiannual Report

Schwab Investor Money Fund

The Schwab Investor Money Fund (the fund) seeks the highest current income that is consistent with stability of capital and liquidity. To pursue its goal, the fund invests in high-quality, short-term money market investments issued by U.S. and foreign issuers. Examples of these securities include commercial paper, certificates of deposit, repurchase agreements, variable- and floating-rate debt securities, and obligations issued by the U.S. government, its agencies, or instrumentalities. For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Market Highlights. During the six-month reporting period ended June 30, 2019, demand for taxable money market funds rose, aided in part by attractive U.S. short-term bond yields relative to bank deposits, an inverted yield curve, and volatility in financial markets. Following four 0.25% rate hikes in 2018, the Federal Reserve (Fed) held rates steady at its meetings in January, March, May, and June 2019. With the Fed having declared its intent to remain “patient” earlier in the reporting period, by June markets began to expect rate cuts later in 2019 due to increased uncertainties regarding the global economic outlook and the Fed’s intent to monitor incoming information in order to sustain U.S. economic expansion. The federal funds rate ended the reporting period in a target range of 2.25% to 2.50%. Equity markets recovered from December’s sell-off, with major market indices achieving multiple record highs during the period despite ongoing trade tensions and signs of slowing global growth.

*	Data source for yields: U.S. Department of the Treasury

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

42 Days

Management views and portfolio holdings may have changed since the report date.

¹	Maturity shown is the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Prime Money Funds | Semiannual Report

Schwab Investor Money Fund

Performance and Fund Facts as of June 30, 2019

Seven-Day Average Yield Trend for Previous 12 Months

Seven-Day Yields

	Schwab Investor Money Fund
Ticker Symbol	SWRXX
Minimum Initial Investment¹	None
Seven-Day Yield (with waivers)²	2.18%
Seven-Day Yield (without waivers)²	1.99%
Seven-Day Effective Yield (with waivers)²	2.21%

Please see prospectus for further detail and eligibility requirements.

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Schwab Prime Money Funds | Semiannual Report

Schwab Prime Money Funds

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning January 1, 2019 and held through June 30, 2019.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Expense Ratio (Annualized)¹	Beginning Account Value at 1/1/19	Ending Account Value (Net of Expenses) at 6/30/19	Expenses Paid During Period 1/1/19-6/30/19²
Schwab Value Advantage Money Fund
Investor Shares
Actual Return	0.34%	$1,000.00	$1,011.40	$1.70
Hypothetical 5% Return	0.34%	$1,000.00	$1,023.11	$1.71
Ultra Shares
Actual Return	0.19%	$1,000.00	$1,012.10	$0.95
Hypothetical 5% Return	0.19%	$1,000.00	$1,023.86	$0.95
Schwab Retirement Advantage Money Fund
Actual Return	0.35%	$1,000.00	$1,011.30	$1.75
Hypothetical 5% Return	0.35%	$1,000.00	$1,023.06	$1.76
Schwab Investor Money Fund
Actual Return	0.35%	$1,000.00	$1,011.30	$1.75
Hypothetical 5% Return	0.35%	$1,000.00	$1,023.06	$1.76

¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
²	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days of the period, and divided by 365 days of the fiscal year.

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Schwab Prime Money Funds | Semiannual Report

Schwab Value Advantage Money Fund

Financial Statements

Financial Highlights

Investor Shares	1/1/19– 6/30/19*	1/1/18– 12/31/18	1/1/17– 12/31/17	1/1/16– 12/31/16	1/1/15– 12/31/15	1/1/14– 12/31/14
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.01 ¹	0.02 ¹	0.01 ¹	0.00 ¹^,²	0.00 ¹^,²	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	(0.00) ²	—	0.00 ²	(0.00) ²	0.00 ²
Total from investment operations	0.01	0.02	0.01	0.00 ²	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.01)	(0.02)	(0.01)	(0.00) ²	(0.00) ²	(0.00) ²
Distributions from net realized gains	—	—	—	(0.00) ²	—	—
Total distributions	(0.01)	(0.02)	(0.01)	(0.00) ²	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	1.14% ³	1.79%	0.81%	0.25%	0.01%	0.01%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.34% ⁴	0.34%	0.39% ⁵	0.41% ⁶	0.27% ⁶	0.21% ⁶
Gross operating expenses	0.43% ⁴	0.44%	0.54%	0.58%	0.58%	0.58%
Net investment income (loss)	2.28% ⁴	1.87%	0.84%	0.25%	0.01%	0.01%
Net assets, end of period (x 1,000,000)	$61,868	$47,721	$14,955	$7,060	$6,406	$7,217

Ultra Shares	1/1/19– 6/30/19*	1/1/18– 12/31/18	1/1/17– 12/31/17⁷	1/1/16– 12/31/16	1/1/15– 12/31/15	1/1/14– 12/31/14
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.01 ¹	0.02 ¹	0.01 ¹	0.00 ¹^,²	0.00 ¹^,²	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	(0.00) ²	—	0.00 ²	(0.00) ²	0.00 ²
Total from investment operations	0.01	0.02	0.01	0.00 ²	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.01)	(0.02)	(0.01)	(0.00) ²	(0.00) ²	(0.00) ²
Distributions from net realized gains	—	—	—	(0.00) ²	—	—
Total distributions	(0.01)	(0.02)	(0.01)	(0.00) ²	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	1.21% ³	1.94%	1.00%	0.45%	0.07%	0.01%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.19% ⁴	0.19%	0.20% ⁵	0.21% ⁶	0.21% ⁶	0.21% ⁶
Gross operating expenses	0.28% ⁴	0.29%	0.33%	0.35%	0.35%	0.35%
Net investment income (loss)	2.43% ⁴	2.00%	1.08%	0.44%	0.07%	0.01%
Net assets, end of period (x 1,000,000)	$37,689	$29,554	$12,612	$2,015	$1,972	$1,818

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Not annualized.

⁴

Annualized.

⁵

Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

⁶

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation.

⁷

Effective November 17, 2017, the Select Shares and Premier Shares were combined into the Ultra Shares. The financial history as shown in the financial highlights is that of the former Ultra Shares.

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Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarter of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov. Effective August 1, 2019, the fund is no longer required to file Form N-Q. The fund also files a complete schedule of portfolio holdings with the SEC monthly on Form N-MFP which is available immediately upon filing. The fund also makes available its complete schedule of portfolio holdings 5 business days after month end on the fund’s website at www.schwabfunds.com/schwabfunds_prospectus along with a link to the fund’s Form N-MFP filings on the SEC’s website.

For fixed-rate obligations and repurchase agreements, the rate shown is the coupon rate (the rate established when the obligation was issued) and if the coupon rate is not available, the effective yield at the time of purchase is shown. For variable-rate obligations, the rate shown is the interest rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The date shown in the maturity date column below is either the date on which the principal amount must be paid or the date payment must be made pursuant to a demand feature. If the security’s structure includes one of a number of maturity-shortening provisions set forth in Rule 2a-7, such as an interest rate reset, demand feature or put feature, the effective maturity date is also disclosed. If the effective maturity and maturity date are the same, the date will only appear in the maturity date column.

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 53.5% of net assets
Asset-Backed Commercial Paper 15.1%
ALPINE SECURITIZATION LLC	a,b	2.58%		08/14/19	228,000,000	228,000,000
	a,b	2.58%		08/16/19	149,000,000	149,000,000
	a,b	2.68%		09/04/19	25,000,000	25,004,202
	a,b	2.32%		09/30/19	489,000,000	486,144,647
ATLANTIC ASSET SECURITIZATION LLC	a,b	2.40%		07/01/19	146,000,000	146,000,000
	a,b	2.58%		07/03/19	98,000,000	97,986,062
	a,b	2.59%		07/08/19	100,000,000	99,950,028
	a,b	2.59%		07/09/19	50,000,000	49,971,444
	a,b	2.56%		07/10/19	33,600,000	33,578,664
	a,b	2.59%		07/11/19	86,000,000	85,938,606
	a,b	2.58%		07/12/19	25,000,000	24,980,444
	a,b	2.57%		08/01/19	50,000,000	49,890,208
	a,b	2.55%		08/06/19	65,000,000	64,835,550
	a,b	2.51%		08/07/19	50,000,000	49,871,528
	a,b	2.55%		08/07/19	49,500,000	49,371,286
	a,b	2.50%		09/04/19	20,000,000	19,910,444
	a,b	2.32%		09/23/19	66,841,000	66,480,727
	a,b	2.32%		09/24/19	100,000,000	99,454,583
BARTON CAPITAL SA	a,b	2.60%		07/01/19	97,000,000	97,000,000
	a,b	2.58%		07/08/19	13,000,000	12,993,529
	a,b	2.57%		07/09/19	97,500,000	97,444,750
	a,b	2.57%		07/12/19	75,000,000	74,941,562
	a,b	2.48%		07/30/19	45,000,000	44,910,463
	a,b	2.57%		08/02/19	50,000,000	49,886,667
	a,b	2.57%		08/05/19	25,000,000	24,938,021
	a,b	2.48%		08/06/19	17,220,000	17,177,467
	a,b	2.56%		08/09/19	72,000,000	71,801,880
	a,b	2.58%		08/12/19	43,000,000	42,871,573
	a,b	2.59%		08/12/19	100,000,000	99,700,167
	a,b	2.58%		08/13/19	14,000,000	13,957,191
	a,b	2.50%		08/26/19	25,000,000	24,903,556

₁₂

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
	a,b	2.45%		09/04/19	52,700,000	52,468,779
	a,b	2.37%		09/12/19	50,000,000	49,760,722
	a,b	2.31%		09/23/19	155,000,000	154,168,167
	a,b	2.31%		09/26/19	45,000,000	44,749,875
BEDFORD ROW FUNDING CORP	a,b	2.28%		12/05/19	131,000,000	129,714,562
	a,b	2.28%		12/06/19	71,000,000	70,298,875
	a,b	2.31%		12/12/19	135,000,000	133,597,800
BENNINGTON STARK CAPITAL COMPANY LLC	a,b	2.44%		07/02/19	12,000,000	11,999,187
	a,b	2.42%		07/08/19	20,000,000	19,990,589
	a,b	2.59%		07/08/19	116,000,000	115,942,032
	a,b	2.59%		07/09/19	62,000,000	61,964,591
	a,b	2.53%		08/02/19	43,500,000	43,402,560
	a,b	2.57%		08/02/19	36,000,000	35,918,400
	a,b	2.58%		08/06/19	117,000,000	116,700,480
	a,b	2.53%		08/15/19	89,000,000	88,720,762
CAFCO LLC	a,b	2.57%		07/10/19	50,000,000	49,968,125
	a,b	2.56%		07/19/19	111,000,000	110,859,030
	a,b	2.56%		07/23/19	22,000,000	21,965,851
	a,b	2.56%		07/26/19	75,000,000	74,867,708
	a,b	2.64%		08/20/19	30,000,000	29,891,250
	a,b	2.50%		08/26/19	75,000,000	74,710,667
	a,b	2.65%		08/29/19	25,000,000	24,892,653
	a,b	2.63%		10/01/19	78,500,000	77,980,417
	a,b	2.59%		10/23/19	30,000,000	29,756,800
	a,b	2.34%		12/03/19	13,000,000	12,870,704
Cancara Asset Securitisation, LLC	a,b	2.32%		09/25/19	50,000,000	49,724,083
CHARIOT FUNDING LLC	a,b	2.89%		07/08/19	99,000,000	98,945,137
	a,b	2.87%		07/15/19	86,000,000	85,905,352
	a,b	2.55%		08/08/19	40,000,000	39,893,178
	a,b	2.56%		08/12/19	485,000,000	483,562,783
	a,b	2.62%		09/05/19	5,000,000	4,976,258
	a,b	2.69%		09/05/19	50,000,000	49,757,083
	a,b	2.40%		09/18/19	88,000,000	87,540,396
CHARTA LLC	a,b	2.55%		07/01/19	95,000,000	95,000,000
	a,b	2.56%		07/02/19	75,100,000	75,094,701
	a,b	2.56%		07/30/19	100,000,000	99,795,389
	a,b	2.56%		08/01/19	50,000,000	49,890,639
	a,b	2.65%		08/14/19	25,000,000	24,919,944
	a,b	2.50%		08/26/19	47,000,000	46,818,684
	a,b	2.50%		08/27/19	25,000,000	24,901,833
	a,b	2.66%		08/29/19	25,000,000	24,892,653
	a,b	2.45%		09/04/19	75,000,000	74,670,937
	a,b	2.54%		11/13/19	48,000,000	47,548,200
	a,b	2.34%		12/03/19	18,000,000	17,820,975
	a,b	2.28%		12/16/19	24,100,000	23,846,950
COLLATERALIZED COMMERCIAL PAPER CO LLC	a	2.83%		08/06/19	80,000,000	79,776,800
	a	2.81%		08/07/19	50,000,000	49,857,653
	a	2.62%		09/25/19	95,000,000	94,412,214

₁₃

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
	a	2.60%		10/10/19	25,000,000	24,819,743
	a	2.31%		12/13/19	45,150,000	44,678,183
	a	2.31%		12/16/19	194,000,000	191,935,840
COLLATERALIZED COMMERCIAL PAPER II CO LLC	a,b	2.68%		08/29/19	25,000,000	24,891,833
CRC FUNDING LLC	a,b	2.56%		07/03/19	20,000,000	19,997,178
	a,b	2.57%		07/10/19	50,000,000	49,968,125
	a,b	2.57%		07/16/19	35,000,000	34,962,813
	a,b	2.57%		07/19/19	47,000,000	46,940,075
	a,b	2.56%		07/30/19	50,000,000	49,897,694
	a,b	2.65%		08/13/19	25,000,000	24,921,764
	a,b	2.65%		08/15/19	30,000,000	29,901,750
	a,b	2.52%		08/19/19	65,000,000	64,778,819
	a,b	2.49%		08/23/19	45,000,000	44,836,363
	a,b	2.64%		08/23/19	25,000,000	24,903,938
	a,b	2.65%		08/23/19	44,000,000	43,830,930
	a,b	2.65%		08/29/19	16,000,000	15,931,298
	a,b	2.65%		09/12/19	100,000,000	99,470,750
	a,b	2.63%		10/02/19	45,000,000	44,698,913
	a,b	2.28%		12/16/19	35,000,000	34,632,500
CROWN POINT CAPITAL COMPANY LLC	a,b	2.40%		07/01/19	10,000,000	10,000,000
	a,b	2.56%		08/19/19	494,000,000	494,000,000
	a,b	2.55%		09/11/19	46,000,000	46,000,000
	a,b	2.45%		09/16/19	203,000,000	203,000,000
	a,b	2.35%		09/30/19	348,000,000	348,000,000
GOTHAM FUNDING CORP	a,b	2.57%		07/23/19	55,000,000	54,914,292
	a,b	2.57%		08/01/19	96,800,000	96,587,444
	a,b	2.57%		08/02/19	130,000,000	129,705,333
KELLS FUNDING LLC	a,b	2.57%		07/23/19	75,000,000	74,909,687
	a,b	2.57%		07/26/19	199,000,000	198,689,892
	a,b	2.57%		08/01/19	100,000,000	99,801,667
	a,b	2.56%		08/07/19	95,000,000	94,785,511
	a,b	2.55%		08/09/19	125,000,000	124,683,750
	a,b	2.55%		08/12/19	148,000,000	147,615,159
	a,b	2.56%		08/13/19	25,000,000	24,932,972
	a,b	2.56%		08/20/19	50,000,000	49,841,250
	a,b	2.52%		08/29/19	73,000,000	72,716,111
	a,b	2.57%		08/30/19	100,000,000	99,596,250
	a,b	2.56%		09/06/19	164,000,000	163,259,449
	a,b	2.57%		09/09/19	100,000,000	99,539,583
	a,b	2.41%		09/10/19	100,000,000	99,560,000
	a,b	2.45%		09/10/19	97,000,000	96,567,865
	a,b	2.41%		09/18/19	200,000,000	199,017,444
	a,b	2.41%		09/26/19	148,000,000	147,174,653
	a,b	2.39%		09/27/19	9,000,000	8,949,638
	a,b	2.28%		12/17/19	156,000,000	154,401,000
LEXINGTON PARKER CAPITAL COMPANY LLC	a,b	2.40%		07/01/19	29,789,000	29,789,000
	a,b	2.59%		07/03/19	427,000,000	426,939,034

₁₄

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
LMA AMERICAS LLC	a,b	2.39%		07/01/19	219,000,000	219,000,000
	a,b	2.58%		08/12/19	45,000,000	44,865,600
	a,b	2.51%		09/04/19	130,000,000	129,415,542
	a,b	2.45%		09/16/19	10,000,000	9,948,025
MANHATTAN ASSET FUNDING COMPANY LLC	a,b	2.30%		12/11/19	70,000,000	69,280,536
Matchpoint Finance PLC	a,b	2.57%		08/15/19	99,000,000	98,684,438
	a,b	2.39%		09/10/19	99,000,000	98,535,305
	a,b	2.55%		11/20/19	98,000,000	97,025,880
METLIFE SHORT TERM FUNDING LLC	a,b	2.57%		07/09/19	75,550,000	75,507,188
	a,b	2.55%		07/15/19	79,000,000	78,922,273
	a,b	2.56%		07/22/19	22,000,000	21,967,403
	a,b	2.78%		07/22/19	58,000,000	57,907,297
	a,b	2.63%		08/12/19	50,000,000	49,848,333
	a,b	2.70%		08/12/19	15,000,000	14,953,450
	a,b	2.53%		09/16/19	30,000,000	29,838,942
	a,b	2.61%		09/23/19	14,000,000	13,915,720
	a,b	2.60%		10/01/19	2,870,000	2,851,150
	a,b	2.60%		10/02/19	30,000,000	29,800,825
	a,b	2.60%		10/16/19	84,000,000	83,358,357
	a,b	2.58%		10/28/19	89,400,000	88,646,432
	a,b	2.30%		12/13/19	61,600,000	60,959,103
	a,b	2.20%		01/03/20	85,944,000	84,980,425
NIEUW AMSTERDAM RECEIVABLES CORP	a,b	2.58%		07/01/19	50,000,000	50,000,000
	a,b	2.58%		07/05/19	21,000,000	20,994,027
	a,b	2.56%		07/17/19	24,000,000	23,972,800
	a,b	2.56%		07/22/19	48,000,000	47,928,880
	a,b	2.51%		08/01/19	100,000,000	99,784,722
	a,b	2.51%		08/05/19	45,000,000	44,890,625
	a,b	2.46%		09/04/19	249,000,000	247,903,017
OLD LINE FUNDING LLC	a,b	2.88%		07/09/19	50,000,000	49,968,444
	a,b	2.56%		08/01/19	100,000,000	99,781,278
	a,b	2.64%		08/20/19	32,000,000	31,884,000
	a,b	2.48%		08/27/19	43,425,000	43,255,860
	a,b	2.63%		09/16/19	49,000,000	48,728,554
	a,b	2.62%		09/18/19	100,000,000	99,431,639
	a,b	2.24%		10/21/19	17,000,000	16,882,587
	a,b	2.59%		10/24/19	80,000,000	79,345,778
	a,b	2.34%		12/05/19	80,000,000	79,194,067
PRICOA SHORT TERM FUNDING LLC	a,b	2.79%		07/08/19	46,600,000	46,575,082
	a,b	2.60%		09/30/19	45,000,000	44,707,663
	a,b	2.50%		12/05/19	50,000,000	49,461,403
RIDGEFIELD FUNDING COMPANY LLC	a,b	2.59%		07/08/19	11,000,000	10,994,503
	a,b	2.59%		07/16/19	38,000,000	37,959,308
	a,b	2.59%		07/17/19	58,750,000	58,682,894
	a,b	2.59%		07/22/19	24,955,000	24,917,588
	a,b	2.57%		08/02/19	81,000,000	80,816,400
	a,b	2.54%		08/20/19	228,000,000	227,202,000
	a,b	2.54%		08/28/19	44,783,000	44,601,181

₁₅

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
	a,b	2.54%		08/29/19	109,000,000	108,549,830
	a,b	2.47%		09/04/19	24,900,000	24,789,852
	a,b	2.42%		09/16/19	27,000,000	26,861,400
	a,b	2.33%		09/20/19	239,000,000	237,752,420
	a,b	2.40%		09/20/19	75,000,000	74,598,375
SHEFFIELD RECEIVABLES COMPANY LLC	a,b	2.49%		09/04/19	100,000,000	99,554,028
STARBIRD FUNDING CORP	a,b	2.58%		07/01/19	13,300,000	13,300,000
THUNDER BAY FUNDING LLC	a,b	2.83%		07/15/19	75,000,000	74,918,625
	a,b	2.26%		10/15/19	48,700,000	48,378,796
VERSAILLES COMMERCIAL PAPER LLC	a,b	2.58%		07/01/19	28,150,000	28,150,000
	a,b	2.60%		07/01/19	61,500,000	61,500,000
	a,b	2.56%		07/26/19	47,000,000	46,917,097
	a,b	2.51%		07/31/19	6,000,000	5,987,500
	a,b	2.57%		07/31/19	41,000,000	40,912,875
	a,b	2.51%		08/01/19	26,000,000	25,944,028
	a,b	2.57%		08/05/19	44,000,000	43,890,917
	a,b	2.52%		08/14/19	100,000,000	99,694,444
VICTORY RECEIVABLES CORP	a,b	2.58%		07/02/19	91,000,000	90,993,529
	a,b	2.55%		07/19/19	100,000,000	99,873,000
	a,b	2.53%		10/01/19	20,250,000	20,120,108
						15,019,346,518
Financial Company Commercial Paper 5.2%
BANCO SANTANDER SA (NEW YORK BRANCH)		2.39%		09/06/19	60,004,000	59,738,216
CANADIAN IMPERIAL BANK OF COMMERCE	b	2.64%		08/23/19	165,000,000	164,368,417
CITIGROUP GLOBAL MARKETS INC	b	2.55%		07/23/19	94,000,000	93,854,666
	b	2.33%		11/25/19	95,000,000	94,107,792
CREDIT SUISSE AG (NEW YORK BRANCH)		2.67%		09/05/19	346,000,000	344,331,703
DBS BANK LTD	b	2.56%		07/03/19	90,000,000	89,987,300
	b	2.63%		10/02/19	23,500,000	23,342,765
	b	2.22%		12/20/19	100,000,000	98,948,889
DNB BANK ASA	b	2.63%		08/13/19	83,000,000	82,742,735
	b	2.48%		08/29/19	137,000,000	136,447,662
FEDERATION DES CAISSES DESJARDINS DU QUEBEC	b	2.51%		08/16/19	153,000,000	152,513,205
HSBC USA INC	b	2.88%		07/09/19	130,000,000	129,917,956
	b	2.82%		07/18/19	33,500,000	33,455,943
	b	2.71%		08/09/19	75,000,000	74,783,063
	b	2.66%		09/04/19	50,000,000	49,763,472
	b	2.66%		09/05/19	56,600,000	56,328,131
	b	2.67%		09/06/19	127,000,000	126,378,370
	b	2.61%		11/01/19	28,000,000	27,753,658
	b	2.34%		12/06/19	20,000,000	19,796,794
JP MORGAN SECURITIES LLC		2.90%		07/09/19	88,500,000	88,443,753

₁₆

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
LANDESBANK BADEN WUERTTEMBERG (NEW YORK BRANCH)		2.43%		07/02/19	105,000,000	104,992,913
		2.49%		07/05/19	250,000,000	249,931,111
		2.43%		07/08/19	232,000,000	231,890,380
MACQUARIE BANK LTD	b	2.43%		09/03/19	100,000,000	99,569,778
	b	2.43%		09/04/19	100,000,000	99,563,056
	b	2.38%		09/09/19	36,300,000	36,132,718
	b	2.29%		09/27/19	258,000,000	256,562,080
MITSUBISHI UFJ TRUST AND BANKING CORP (SINGAPORE BRANCH)	b	2.60%		07/01/19	121,000,000	121,000,000
	b	2.59%		07/12/19	22,000,000	21,982,724
MITSUBISHI UFJ TRUST AND BANKING CORPORATION (NEW YORK BRANCH)	b	2.60%		08/09/19	95,000,000	94,734,475
NATIONAL AUSTRALIA BANK LIMITED	b	2.81%		07/09/19	214,000,000	213,868,033
NATIONWIDE BUILDING SOCIETY	b	2.35%		09/20/19	101,100,000	100,567,709
	b	2.33%		09/26/19	294,100,000	292,451,079
	b	2.36%		09/27/19	100,000,000	99,428,000
NRW BANK	b	2.55%		07/02/19	220,000,000	219,984,539
	b	2.56%		07/31/19	222,000,000	221,530,100
	b	2.29%		09/19/19	85,000,000	84,569,333
SANTANDER UK PLC		2.31%		10/01/19	118,000,000	117,306,422
SUMITOMO MITSUI BANKING CORPORATION	b	2.64%		08/19/19	54,600,000	54,406,034
SUMITOMO MITSUI TRUST BANK LTD (NEW YORK BRANCH)	b	2.48%		09/16/19	49,150,000	48,891,389
SUMITOMO MITSUI TRUST BANK LTD (SINGAPORE BRANCH)	b	2.62%		07/02/19	34,000,000	33,997,544
	b	2.40%		09/05/19	115,000,000	114,496,108
	b	2.57%		09/09/19	2,000,000	1,990,083
	b	2.35%		10/01/19	53,000,000	52,684,414
UBS AG (LONDON BRANCH)	b	2.37%		12/12/19	100,000,000	98,934,000
UNITED OVERSEAS BANK LTD	b	2.52%		08/15/19	50,000,000	49,843,750
	b	2.42%		09/04/19	100,000,000	99,564,861
	b	2.33%		09/30/19	47,000,000	46,724,371
						5,214,601,494
Certificates of Deposit 20.3%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (NEW YORK BRANCH)		2.60%		09/06/19	100,000,000	100,000,000
BANK OF MONTREAL (CHICAGO BRANCH)		2.48%		09/03/19	200,000,000	200,000,000
		2.31%		09/23/19	140,000,000	140,000,000
BANK OF NOVA SCOTIA (HOUSTON BRANCH)		2.61%		08/27/19	300,000,000	300,000,000
BANK OF THE WEST		2.56%		07/17/19	241,100,000	241,100,000
BAYERISCHE LANDESBANK (NEW YORK BRANCH)		2.48%		07/03/19	102,000,000	102,000,000
		2.55%		07/12/19	397,000,000	397,000,000
BNP PARIBAS (NEW YORK BRANCH)		2.28%		12/09/19	112,000,000	112,000,000
		2.17%		12/23/19	171,000,000	171,000,000
BNP PARIBAS (SAN FRANCISCO BRANCH)		2.64%		09/11/19	65,000,000	65,000,000

₁₇

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
BRANCH BANKING AND TRUST COMPANY		2.39%		07/02/19	962,000,000	962,000,000
		2.40%		07/05/19	526,000,000	526,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)		2.77%		07/11/19	200,000,000	200,000,000
CITIBANK NA (NEW YORK BRANCH)		2.62%		09/17/19	200,000,000	200,000,000
		2.57%		12/02/19	275,000,000	275,000,000
COMMONWEALTH BANK OF AUSTRALIA (NEW YORK BRANCH)		2.57%		07/08/19	100,000,000	100,000,000
		2.46%		08/30/19	210,000,000	210,000,000
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)		2.60%		09/12/19	200,000,000	200,000,000
		2.31%		11/12/19	75,000,000	75,000,000
CREDIT AGRICOLE SA (LONDON BRANCH)		2.40%		09/18/19	285,000,000	285,000,000
		2.31%		10/01/19	323,000,000	323,004,101
CREDIT SUISSE AG (NEW YORK BRANCH)		2.63%		08/27/19	187,000,000	187,000,000
		2.66%		09/03/19	6,000,000	6,000,000
		2.65%		09/25/19	460,500,000	460,500,000
		2.62%		10/09/19	142,000,000	142,000,000
		2.62%		10/11/19	95,000,000	95,000,000
HSBC BANK USA NA (NEW YORK BRANCH)		2.17%		12/24/19	47,000,000	47,000,000
LANDESBANK BADEN WUERTTEMBERG (NEW YORK BRANCH)		2.44%		07/10/19	406,000,000	406,000,000
LANDESBANK HESSEN THUERINGEN GIROZENTRALE (NEW YORK BRANCH)		2.39%		07/01/19	315,000,000	315,000,000
		2.40%		07/03/19	290,000,000	290,000,000
		2.40%		07/08/19	166,000,000	165,999,839
MITSUBISHI UFJ TRUST AND BANKING CORPORATION (NEW YORK BRANCH)		2.57%		08/05/19	120,000,000	120,000,000
		2.55%		08/14/19	158,000,000	158,000,000
		2.53%		08/22/19	154,000,000	154,000,000
		2.46%		08/30/19	97,000,000	97,001,607
		2.53%		09/03/19	37,500,000	37,500,000
		2.50%		09/10/19	200,000,000	200,000,000
		2.50%		09/12/19	105,000,000	105,000,000
		2.50%		09/20/19	46,000,000	46,000,000
		2.31%		09/26/19	180,000,000	180,000,000
		2.31%		10/10/19	106,000,000	106,000,000
		2.59%		10/29/19	46,000,000	46,000,000
MIZUHO BANK LTD (NEW YORK BRANCH)		2.57%		07/17/19	436,000,000	436,000,000
		2.57%		07/23/19	55,000,000	55,000,000
		2.55%		07/29/19	71,000,000	71,000,000
		2.54%		08/15/19	144,500,000	144,500,000
		2.54%		08/20/19	75,000,000	75,000,000
		2.53%		08/22/19	217,000,000	217,000,000
		2.53%		08/26/19	309,000,000	309,000,000
		2.50%		09/03/19	120,000,000	120,000,000
		2.49%		09/12/19	92,000,000	92,000,000
MUFG BANK LTD (NEW YORK BRANCH)		2.58%		07/31/19	352,000,000	352,000,000
		2.55%		08/27/19	91,000,000	91,000,000
		2.48%		08/29/19	200,000,000	200,000,000
		2.48%		09/30/19	200,000,000	200,000,000

₁₈

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
		2.37%		10/23/19	119,000,000	119,000,000
		2.39%		10/23/19	153,000,000	153,000,000
		2.52%		10/23/19	195,000,000	195,000,000
		2.54%		10/31/19	104,000,000	104,000,000
		2.59%		10/31/19	320,000,000	320,000,000
		2.60%		10/31/19	137,000,000	137,000,000
MUFG UNION BANK NA		2.60%		10/25/19	71,000,000	71,000,000
		2.57%		11/05/19	233,000,000	233,000,000
		2.57%		11/06/19	200,000,000	200,000,000
		2.57%		11/08/19	236,000,000	236,000,000
		2.50%		12/02/19	25,000,000	25,000,000
		2.32%		12/09/19	197,000,000	197,000,000
		2.29%		12/17/19	18,000,000	18,000,000
		2.15%		12/26/19	10,500,000	10,500,000
NATIONAL AUSTRALIA BANK LTD (LONDON BRANCH)		2.57%		10/03/19	462,000,000	462,000,000
NORDEA BANK ABP (NEW YORK BRANCH)		2.63%		08/14/19	210,000,000	210,000,000
		2.59%		08/19/19	101,500,000	101,500,000
		2.61%		08/26/19	217,000,000	217,000,000
		2.61%		09/05/19	161,000,000	161,000,000
		2.51%		11/27/19	23,500,000	23,500,000
		2.33%		12/06/19	208,500,000	208,500,000
		2.28%		12/12/19	7,000,000	7,000,000
NORINCHUKIN BANK (NEW YORK BRANCH)		2.42%		07/01/19	203,000,000	203,000,000
OVERSEA CHINESE BANKING CORPORATION LTD (NEW YORK BRANCH)		2.56%		07/01/19	26,000,000	26,000,000
		2.53%		09/06/19	89,000,000	89,000,000
		2.27%		12/12/19	83,000,000	83,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)		2.63%		08/14/19	150,000,000	150,000,000
		2.54%		08/15/19	206,000,000	206,000,000
		2.61%		09/05/19	102,000,000	102,000,000
		2.50%		09/11/19	130,000,000	130,000,000
		2.57%		11/01/19	98,900,000	98,912,632
		2.32%		12/09/19	25,000,000	25,000,000
		2.30%		12/12/19	6,000,000	6,000,000
		2.14%		12/27/19	203,000,000	203,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)		2.83%		07/11/19	156,000,000	156,000,000
		2.78%		07/22/19	150,000,000	150,000,000
		2.63%		09/09/19	24,000,000	24,000,000
		2.63%		09/18/19	59,000,000	59,000,000
		2.59%		10/31/19	104,000,000	104,000,000
SUMITOMO MITSUI TRUST BANK LTD (NEW YORK BRANCH)		2.57%		07/02/19	83,000,000	83,000,000
		2.60%		07/03/19	23,000,000	23,000,000
		2.56%		07/24/19	151,000,000	151,000,000
		2.55%		08/02/19	59,500,000	59,500,000
		2.56%		08/06/19	150,000,000	150,000,000
		2.55%		08/13/19	350,000,000	350,000,000
		2.54%		08/20/19	130,000,000	130,000,000
		2.48%		08/27/19	67,000,000	67,000,000

₁₉

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
		2.50%		09/03/19	125,000,000	125,000,000
		2.49%		09/04/19	200,000,000	200,000,000
		2.31%		09/26/19	5,000,000	5,000,000
		2.37%		09/30/19	100,000,000	100,000,000
		2.32%		10/01/19	100,000,000	100,000,000
		2.32%		10/02/19	100,000,000	100,000,000
		2.32%		10/03/19	84,000,000	84,000,000
SVENSKA HANDELSBANKEN AB (NEW YORK BRANCH)		2.11%		01/02/20	199,000,000	199,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)		2.56%		07/01/19	110,000,000	110,000,000
		2.78%		07/15/19	196,000,000	196,000,000
		2.50%		08/27/19	26,800,000	26,800,000
		2.54%		09/06/19	71,500,000	71,500,000
		2.61%		09/09/19	473,000,000	473,000,000
		2.62%		09/23/19	83,000,000	83,000,000
		2.60%		10/15/19	527,000,000	527,000,000
		2.39%		11/06/19	156,000,000	156,000,000
		2.88%		01/16/20	80,000,000	80,109,994
		2.17%		06/19/20	137,400,000	137,400,000
US BANK NATIONAL ASSOCIATION		2.17%		12/02/19	178,000,000	178,000,000
WELLS FARGO BANK NA		2.69%		11/13/19	175,000,000	175,000,000
						20,274,828,173
Non-Financial Company Commercial Paper 2.0%
BASF SE	b	2.44%		07/08/19	100,000,000	99,952,750
COCA-COLA CO	b	2.78%		07/24/19	75,000,000	74,868,708
	b	2.79%		07/24/19	55,000,000	54,903,368
	b	2.56%		08/07/19	52,500,000	52,362,946
	b	2.59%		09/09/19	73,000,000	72,636,622
	b	2.24%		11/20/19	20,000,000	19,824,867
	b	2.24%		11/21/19	50,000,000	49,559,083
EQUINOR ASA	b	2.46%		09/03/19	50,000,000	49,783,111
	b	2.47%		09/03/19	50,000,000	49,782,222
EXXON MOBIL CORP		2.29%		09/13/19	160,000,000	159,250,134
		2.29%		09/17/19	135,800,000	135,129,148
TOTAL CAPITAL CANADA LTD	a,b	2.39%		07/02/19	671,000,000	670,955,453
TOYOTA FINANCE AUSTRALIA LTD		2.52%		08/15/19	130,000,000	129,593,750
TOYOTA MOTOR CREDIT CORP		2.32%		12/03/19	295,000,000	292,091,382
TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.		2.69%		09/13/19	49,000,000	48,733,086
						1,959,426,630
Non-Negotiable Time Deposits 10.0%
ABN AMRO BANK NV (AMSTERDAM BRANCH)		2.41%		07/02/19	470,000,000	470,000,000
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (LONDON BRANCH)		2.45%		07/02/19	448,000,000	448,000,000
		2.45%		07/03/19	2,424,000,000	2,424,000,000
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)		2.35%		07/01/19	1,724,000,000	1,724,000,000

₂₀

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
DBS BANK LTD (SINGAPORE BRANCH)		2.50%		07/03/19	285,000,000	285,000,000
DNB BANK ASA (GRAND CAYMAN BRANCH)		2.35%		07/01/19	1,031,000,000	1,031,000,000
MIZUHO BANK LTD (NEW YORK BRANCH)		2.40%		07/01/19	467,000,000	467,000,000
NATIONAL AUSTRALIA BANK LTD (GRAND CAYMAN BRANCH)		2.35%		07/01/19	475,000,000	475,000,000
NATIONAL BANK OF CANADA (MONTREAL BRANCH)		2.45%		07/03/19	262,000,000	262,000,000
NRW BANK (DUSSELDORF BRANCH)		2.42%		07/02/19	957,000,000	957,000,000
ROYAL BANK OF CANADA (TORONTO BRANCH)		2.45%		07/03/19	157,000,000	157,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)		2.35%		07/01/19	807,000,000	807,000,000
TORONTO-DOMINION BANK/THE (TORONTO BRANCH)		2.45%		07/03/19	424,000,000	424,000,000
						9,931,000,000
Other Instruments 0.9%
BANK OF AMERICA NA		2.54%		10/09/19	200,000,000	200,000,000
		2.56%		11/04/19	283,000,000	283,000,000
		2.57%		11/04/19	100,000,000	100,000,000
		2.55%		11/15/19	90,000,000	90,000,000
		2.30%		01/07/20	237,000,000	237,000,000
						910,000,000
Total Fixed-Rate Obligations
(Cost $53,309,202,815)						53,309,202,815

Variable-Rate Obligations 24.5% of net assets
Asset-Backed Commercial Paper 1.5%
BEDFORD ROW FUNDING CORP
(1 mo. USD-LIBOR + 0.20%)	a,b	2.64%		07/01/19	40,000,000	40,000,000
(1 mo. USD-LIBOR + 0.34%)	a,b	2.75%	07/15/19	08/13/19	55,000,000	55,000,000
(3 mo. USD-LIBOR + 0.03%)	a,b	2.61%	08/06/19	11/04/19	45,000,000	45,000,000
(3 mo. USD-LIBOR + 0.00%)	a,b	2.56%	08/08/19	11/08/19	125,000,000	125,000,000
(1 mo. USD-LIBOR + 0.14%)	a,b	2.55%	07/15/19	02/13/20	140,000,000	140,000,000
CHARIOT FUNDING LLC
(3 mo. USD-LIBOR + 0.05%)	a,b	2.63%	07/25/19	10/25/19	99,500,000	99,500,000
COLLATERALIZED COMMERCIAL PAPER CO LLC
(3 mo. USD-LIBOR + 0.13%)	a	2.73%		07/03/19	50,000,000	50,000,000
(3 mo. USD-LIBOR + 0.02%)	a	2.54%		09/03/19	140,000,000	140,000,000
(3 mo. USD-LIBOR + 0.03%)	a	2.47%		09/12/19	45,000,000	45,000,000
(1 mo. USD-LIBOR + 0.12%)	a	2.54%	07/08/19	11/07/19	100,000,000	100,000,000
(3 mo. USD-LIBOR + 0.02%)	a	2.41%	09/20/19	12/20/19	161,000,000	161,000,000
COLLATERALIZED COMMERCIAL PAPER II CO LLC
(3 mo. USD-LIBOR + 0.13%)	a,b	2.73%		07/03/19	186,500,000	186,500,000
(3 mo. USD-LIBOR + 0.10%)	a,b	2.70%		07/15/19	164,000,000	164,000,000
(3 mo. USD-LIBOR + 0.03%)	a,b	2.57%		08/12/19	113,500,000	113,500,000
(1 mo. USD-LIBOR + 0.21%)	a,b	2.62%	07/12/19	08/12/19	61,000,000	61,008,132
						1,525,508,132

₂₁

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Financial Company Commercial Paper 3.5%
COMMONWEALTH BANK OF AUSTRALIA
(1 mo. USD-LIBOR + 0.12%)	b	2.54%	07/08/19	08/07/19	77,000,000	77,000,834
(1 mo. USD-LIBOR + 0.10%)	b	2.51%	07/15/19	08/13/19	28,100,000	28,100,000
HSBC USA INC
(3 mo. USD-LIBOR + 0.06%)	b	2.65%		07/17/19	43,000,000	43,000,000
(3 mo. USD-LIBOR + 0.02%)	b	2.60%		07/25/19	50,000,000	50,000,000
(1 mo. USD-LIBOR + 0.12%)	b	2.50%	07/18/19	11/18/19	57,000,000	57,000,000
(1 mo. USD-LIBOR + 0.12%)	b	2.50%	07/22/19	11/21/19	57,000,000	57,000,000
ING US FUNDING LLC
(1 mo. USD-LIBOR + 0.12%)	a,b	2.56%	07/01/19	10/01/19	192,000,000	192,000,000
(1 mo. USD-LIBOR + 0.11%)	a,b	2.55%	07/03/19	10/03/19	190,000,000	190,000,000
(1 mo. USD-LIBOR + 0.10%)	a	2.51%	07/08/19	11/08/19	280,000,000	280,000,000
JP MORGAN SECURITIES LLC
(3 mo. USD-LIBOR + 0.00%)		2.57%		08/05/19	150,000,000	150,000,000
(1 mo. USD-LIBOR + 0.15%)	b	2.57%	07/08/19	08/06/19	165,000,000	165,000,000
(1 mo. USD-LIBOR + 0.14%)	b	2.55%	07/10/19	02/10/20	205,000,000	205,000,000
NATIONAL BANK OF CANADA
(1 mo. USD-LIBOR + 0.10%)	b	2.54%	07/03/19	10/03/19	200,000,000	200,000,000
OVERSEA-CHINESE BANKING CORPORATION LTD
(3 mo. USD-LIBOR + 0.00%)	b	2.52%	08/19/19	11/19/19	199,000,000	199,000,000
(3 mo. USD-LIBOR + 0.03%)	b	2.50%	09/06/19	12/06/19	47,000,000	47,004,842
ROYAL BANK OF CANADA
(3 mo. USD-LIBOR + 0.01%)	b	2.53%	09/03/19	12/02/19	324,000,000	324,000,000
(1 mo. USD-LIBOR + 0.14%)	b	2.54%	07/24/19	01/24/20	88,900,000	88,900,000
(3 mo. USD-LIBOR + 0.05%)	b	2.63%	07/29/19	01/27/20	126,000,000	126,018,154
(3 mo. USD-LIBOR + 0.05%)	b	2.57%	08/27/19	02/26/20	494,000,000	494,000,000
TORONTO-DOMINION BANK/THE
(1 mo. USD-LIBOR + 0.34%)	b	2.74%	07/23/19	08/23/19	56,000,000	56,000,000
(3 mo. USD-LIBOR + 0.18%)	b	2.52%		09/24/19	153,000,000	153,000,000
(1 mo. USD-LIBOR + 0.11%)	b	2.52%	07/11/19	10/11/19	94,000,000	94,000,000
UBS AG (LONDON BRANCH)
(1 mo. USD-LIBOR + 0.15%)	b	2.56%	07/15/19	11/13/19	170,000,000	170,000,000
						3,446,023,830
Certificates of Deposit 17.4%
BANK OF NOVA SCOTIA (HOUSTON BRANCH)
(3 mo. USD-LIBOR + 0.08%)		2.68%		07/02/19	146,500,000	146,500,000
(1 mo. USD-LIBOR + 0.13%)		2.57%	07/03/19	09/03/19	58,000,000	58,000,000
(3 mo. USD-LIBOR + 0.16%)		2.60%		09/12/19	274,000,000	274,000,000
(3 mo. USD-LIBOR + 0.08%)		2.68%	07/16/19	10/16/19	133,500,000	133,500,000
(3 mo. USD-LIBOR + 0.02%)		2.54%	08/27/19	11/27/19	74,000,000	74,000,000
(3 mo. USD-LIBOR + 0.02%)		2.62%	07/02/19	01/02/20	230,000,000	230,000,000
(3 mo. USD-LIBOR + 0.02%)		2.63%	07/02/19	01/02/20	105,000,000	105,000,000
(3 mo. USD-LIBOR + 0.02%)		2.62%	07/08/19	01/06/20	72,000,000	72,000,000
(3 mo. USD-LIBOR + 0.02%)		2.41%	09/20/19	03/20/20	285,000,000	285,000,000

₂₂

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
BNP PARIBAS (SAN FRANCISCO BRANCH)
(3 mo. USD-LIBOR + 0.09%)		2.69%		07/05/19	154,000,000	154,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.30%)		2.70%		07/25/19	175,000,000	175,000,000
(1 mo. USD-LIBOR + 0.36%)		2.76%	07/30/19	09/30/19	80,000,000	80,000,000
(1 mo. USD-LIBOR + 0.15%)		2.59%	07/01/19	11/01/19	125,000,000	125,000,000
(1 mo. USD-LIBOR + 0.12%)		2.52%	07/26/19	11/26/19	100,000,000	100,000,000
(1 mo. USD-LIBOR + 0.13%)		2.55%	07/08/19	02/07/20	85,000,000	85,000,000
(SOFR + 0.16%)		2.58%	07/01/19	03/13/20	370,000,000	370,000,000
COMMONWEALTH BANK OF AUSTRALIA (LONDON BRANCH)
(1 mo. USD-LIBOR + 0.10%)		2.51%	07/12/19	08/12/19	229,000,000	229,000,000
(3 mo. USD-LIBOR + 0.00%)		2.52%	08/27/19	11/26/19	200,000,000	200,000,000
COMMONWEALTH BANK OF AUSTRALIA (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.30%)		2.74%		07/03/19	255,000,000	255,000,000
(1 mo. USD-LIBOR + 0.11%)		2.50%	07/15/19	08/15/19	200,000,000	200,000,000
(1 mo. USD-LIBOR + 0.10%)		2.54%	07/01/19	11/01/19	170,000,000	170,000,000
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.06%)		2.66%		07/03/19	347,600,000	347,600,000
(1 mo. USD-LIBOR + 0.30%)		2.70%		07/30/19	118,500,000	118,515,087
(1 mo. USD-LIBOR + 0.09%)		2.52%	07/05/19	09/05/19	100,000,000	100,000,000
(3 mo. USD-LIBOR + 0.00%)		2.54%	08/13/19	11/13/19	90,000,000	90,000,000
(1 mo. USD-LIBOR + 0.09%)		2.47%	07/18/19	11/18/19	325,000,000	325,000,000
(1 mo. USD-LIBOR + 0.12%)		2.54%	07/08/19	12/06/19	175,000,000	175,000,000
(1 mo. USD-LIBOR + 0.12%)		2.51%	07/17/19	02/18/20	128,000,000	128,000,000
DNB BANK ASA (LONDON BRANCH)
(3 mo. USD-LIBOR + 0.03%)		2.61%		07/10/19	314,000,000	314,000,000
DNB BANK ASA (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.10%)		2.51%	07/09/19	09/09/19	361,000,000	361,000,000
(1 mo. USD-LIBOR + 0.10%)		2.52%	07/08/19	11/06/19	58,000,000	58,000,000
HSBC BANK USA NA (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.57%		08/05/19	200,000,000	200,000,000
(3 mo. USD-LIBOR + 0.00%)		2.57%		08/06/19	74,000,000	74,000,000
(3 mo. USD-LIBOR + 0.00%)		2.50%		09/04/19	98,800,000	98,800,000
(1 mo. USD-LIBOR + 0.11%)		2.55%	07/01/19	10/01/19	160,000,000	160,000,000
(3 mo. USD-LIBOR + 0.01%)		2.61%	07/03/19	10/03/19	95,000,000	95,000,000
(3 mo. USD-LIBOR + 0.01%)		2.59%	07/25/19	10/25/19	66,000,000	66,000,000
MUFG BANK LTD (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.12%)		2.71%	07/22/19	10/22/19	160,000,000	160,000,000
(3 mo. USD-LIBOR + 0.00%)		2.58%	07/29/19	10/29/19	80,000,000	80,000,000
NATIONAL AUSTRALIA BANK LTD (LONDON BRANCH)
(3 mo. USD-LIBOR + 0.02%)		2.60%	07/29/19	10/28/19	95,000,000	95,000,000
NORDEA BANK ABP (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.10%)		2.50%	07/24/19	10/24/19	49,000,000	49,000,000
OVERSEA CHINESE BANKING CORPORATION LTD (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.57%	08/07/19	11/07/19	194,000,000	194,000,000
(1 mo. USD-LIBOR + 0.13%)		2.54%	07/12/19	11/12/19	415,000,000	415,000,000

₂₃

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
(1 mo. USD-LIBOR + 0.12%)		2.54%	07/08/19	12/06/19	111,000,000	111,000,000
(3 mo. USD-LIBOR + 0.04%)		2.49%	09/13/19	12/13/19	125,000,000	125,000,000
ROYAL BANK OF CANADA (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.13%)		2.54%		09/17/19	250,000,000	250,000,000
(1 mo. USD-LIBOR + 0.11%)		2.49%	07/22/19	02/20/20	377,000,000	377,000,000
(1 mo. USD-LIBOR + 0.11%)		2.51%	07/29/19	02/28/20	328,000,000	328,000,000
(1 mo. USD-LIBOR + 0.12%)		2.56%	07/03/19	03/03/20	180,000,000	180,000,000
(3 mo. USD-LIBOR + 0.06%)		2.66%	07/17/19	04/17/20	387,200,000	387,200,000
(1 mo. USD-LIBOR + 0.16%)		2.55%	07/15/19	05/15/20	76,000,000	76,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.06%)		2.66%		07/03/19	188,000,000	188,000,000
(1 mo. USD-LIBOR + 0.10%)		2.50%	07/29/19	11/27/19	71,000,000	71,000,000
STATE STREET BANK AND TRUST COMPANY
(1 mo. USD-LIBOR + 0.10%)		2.52%	07/08/19	10/07/19	680,000,000	680,000,000
(1 mo. USD-LIBOR + 0.09%)		2.48%	07/15/19	11/15/19	248,000,000	248,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.12%)		2.71%		07/01/19	532,000,000	532,000,000
(1 mo. USD-LIBOR + 0.30%)		2.71%		07/08/19	55,000,000	55,000,000
(1 mo. USD-LIBOR + 0.17%)		2.59%	07/08/19	08/07/19	150,000,000	150,000,000
(1 mo. USD-LIBOR + 0.13%)		2.57%	07/01/19	10/01/19	107,000,000	107,000,000
(1 mo. USD-LIBOR + 0.13%)		2.52%	07/17/19	10/17/19	75,000,000	75,000,000
(1 mo. USD-LIBOR + 0.12%)		2.52%	07/24/19	10/24/19	194,000,000	194,000,000
(1 mo. USD-LIBOR + 0.12%)		2.55%	07/05/19	11/05/19	200,000,000	200,000,000
(1 mo. USD-LIBOR + 0.12%)		2.50%	07/22/19	11/20/19	31,000,000	31,000,000
(1 mo. USD-LIBOR + 0.11%)		2.51%	07/25/19	11/25/19	245,000,000	245,000,000
(3 mo. USD-LIBOR + 0.00%)		2.34%	10/02/19	01/02/20	331,000,000	331,000,000
SVENSKA HANDELSBANKEN AB (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.15%)		2.75%	07/02/19	10/02/19	452,500,000	452,500,000
(3 mo. USD-LIBOR + 0.08%)		2.68%	07/15/19	10/15/19	23,500,000	23,500,000
(3 mo. USD-LIBOR + 0.00%)		2.52%	08/19/19	11/19/19	77,000,000	77,000,000
(3 mo. USD-LIBOR + 0.02%)		2.62%	07/02/19	01/02/20	86,800,000	86,800,000
(1 mo. USD-LIBOR + 0.12%)		2.50%	07/18/19	02/18/20	150,000,000	150,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.30%)		2.70%		07/22/19	503,000,000	503,000,000
(3 mo. USD-LIBOR + 0.17%)		2.69%		09/03/19	285,000,000	285,000,000
(3 mo. USD-LIBOR + 0.03%)		2.37%	09/24/19	03/24/20	122,000,000	122,000,000
WELLS FARGO BANK NA
(1 mo. USD-LIBOR + 0.21%)		2.60%		07/15/19	220,000,000	220,000,000
(1 mo. USD-LIBOR + 0.23%)		2.62%		07/16/19	287,000,000	287,000,000
(3 mo. USD-LIBOR + 0.19%)		2.79%	07/15/19	08/13/19	85,000,000	85,000,000
(3 mo. USD-LIBOR + 0.18%)		2.78%	07/02/19	10/02/19	750,000,000	750,000,000
(3 mo. USD-LIBOR + 0.02%)		2.56%	08/12/19	11/12/19	290,000,000	290,000,000
(3 mo. USD-LIBOR + 0.03%)		2.48%	09/09/19	12/09/19	430,000,000	430,000,000
(3 mo. USD-LIBOR + 0.04%)		2.44%	09/18/19	12/18/19	298,000,000	298,000,000
(3 mo. USD-LIBOR + 0.03%)		2.63%	07/02/19	01/02/20	270,000,000	270,000,000
(3 mo. USD-LIBOR + 0.03%)		2.61%	07/24/19	01/24/20	60,100,000	60,100,000
(3 mo. USD-LIBOR + 0.03%)		2.61%	08/05/19	02/04/20	180,300,000	180,300,000
(3 mo. USD-LIBOR + 0.03%)		2.38%	09/25/19	03/25/20	336,000,000	336,000,000

₂₄

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
WESTPAC BANKING CORPORATION (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.18%)		2.70%	08/27/19	11/25/19	237,000,000	237,205,210
						17,309,520,297
Non-Financial Company Commercial Paper 0.9%
TOYOTA CREDIT CANADA INC
(3 mo. USD-LIBOR + 0.05%)		2.52%	09/06/19	11/14/19	48,100,000	48,100,000
(3 mo. USD-LIBOR + 0.05%)		2.52%	09/06/19	11/22/19	79,000,000	79,000,000
TOYOTA FINANCE AUSTRALIA LTD
(3 mo. USD-LIBOR + 0.03%)		2.57%	08/12/19	11/08/19	184,000,000	184,000,000
TOYOTA MOTOR CREDIT CORP
(3 mo. USD-LIBOR + 0.12%)		2.72%	07/02/19	09/27/19	150,000,000	150,000,000
(1 mo. USD-LIBOR + 0.15%)		2.55%	07/24/19	02/11/20	183,500,000	183,500,000
(1 mo. USD-LIBOR + 0.15%)		2.53%	07/22/19	02/14/20	195,000,000	195,000,000
TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.
(3 mo. USD-LIBOR + 0.05%)		2.57%	08/27/19	11/22/19	85,000,000	85,000,000
						924,600,000
Variable Rate Demand Notes 0.5%
ABAG FINANCE AUTH
TAXABLE RB (PUBLIC POLICY INSTITUTE OF CALIFORNIA) SERIES 2001B (LOC: WELLS FARGO BANK NA)	c	2.55%		07/05/19	17,550,000	17,550,000
COOK CNTY
TAXABLE GO BONDS SERIES 2004D (LOC: BARCLAYS BANK PLC)	c	2.40%		07/05/19	25,000,000	25,000,000
EAGLE CNTY
RB (TARNES AT BC) SERIES 1999B (LOC: WELLS FARGO BANK NA)	c	2.50%		07/05/19	2,410,000	2,410,000
EDWARD-ELMHURST HEALTHCARE
TAXABLE BONDS SERIES 2018 (LOC: BARCLAYS BANK PLC)	c	2.40%		07/05/19	8,000,000	8,000,000
EMF, LLC
VARIABLE RATE DEMAND BONDS SERIES 2012 (LOC: COMERICA BANK)	c	2.41%		07/05/19	3,355,000	3,355,000
GFRE HOLDINGS, LLC
VARIABLE RATE DEMAND NOTES SERIES 2009A (LOC: FEDERAL HOME LOAN BANKS)	c	2.40%		07/05/19	1,510,000	1,510,000
HARTFORD HEALTHCARE CORP
TAXABLE BONDS SERIES C (LOC: JPMORGAN CHASE BANK NA)	c	2.39%		07/05/19	48,000,000	48,000,000
HOWARD UNIV
TAXABLE BONDS SERIES 2016 (LOC: BARCLAYS BANK PLC)	c	2.40%		07/05/19	86,910,000	86,910,000
NEW YORK STATE HFA
TAXABLE HOUSING RB (555 10TH AVE) SERIES 2015B (LOC: LANDESBANK HESSEN THUERINGEN GIROZENTRALE)	c	2.41%		07/05/19	92,000,000	92,000,000
TAXABLE HOUSING RB (555 10TH AVE) SERIES 2016A (LOC: LANDESBANK HESSEN THUERINGEN GIROZENTRALE)	c	2.40%		07/05/19	129,520,000	129,520,000

₂₅

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SAN FRANCISCO
TAXABLE M/F HOUSING RB (1601 MARIPOSA APTS) SERIES 2017B (LOC: BANK OF AMERICA NA)	c	2.38%		07/05/19	19,000,000	19,000,000
TENDERFOOT SEASONAL HOUSING, LLC
TAXABLE NOTES SERIES 2000B (LOC: WELLS FARGO BANK NA)	c	2.50%		07/05/19	3,885,000	3,885,000
YAVAPAI CNTY IDA
TAXABLE RB (DRAKE CEMENT) SERIES 2015 (LOC: BANK OF NOVA SCOTIA)	c	2.55%		07/05/19	21,375,000	21,375,000
						458,515,000
Other Instruments 0.7%
BANK OF AMERICA NA
(1 mo. USD-LIBOR + 0.13%)		2.55%	07/08/19	10/07/19	200,000,000	200,000,000
(1 mo. USD-LIBOR + 0.15%)		2.58%	07/05/19	11/04/19	240,000,000	240,000,000
(3 mo. USD-LIBOR + 0.02%)		2.57%	08/12/19	02/10/20	266,000,000	266,000,000
						706,000,000
Total Variable-Rate Obligations
(Cost $24,370,167,259)						24,370,167,259
Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 21.7% of net assets
U.S. Government Agency Repurchase Agreements* 14.7%
BARCLAYS BANK PLC
Issued 06/25/19, repurchase date 07/02/19 (Collateralized by U.S. Government Agency Securities valued at $944,972,810, 3.50% - 4.00%, due 10/20/48 - 05/20/49)		2.52%		07/02/19	917,449,330	917,000,000
Issued 06/26/19, repurchase date 07/03/19 (Collateralized by U.S. Government Agency Securities valued at $978,983,271, 3.00% - 4.50%, due 05/20/45 - 06/20/49)		2.54%		07/03/19	950,469,194	950,000,000
BMO CAPITAL MARKETS CORP
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $142,169,613, 1.90% - 7.50%, due 10/01/19 - 05/20/69)		2.50%		07/01/19	138,028,750	138,000,000
BNP PARIBAS SA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $1,015,914,650, 0.00% - 8.75%, due 07/18/19 - 06/01/51)		2.50%		07/01/19	991,206,458	991,000,000
BOFA SECURITIES INC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $901,250,000, 3.50% - 4.00%, due 10/01/47 - 06/01/49)		2.50%		07/01/19	875,182,292	875,000,000

₂₆

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
GOLDMAN SACHS & CO LLC
Issued 06/24/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $978,180,000, 2.50% - 7.50%, due 08/01/24 - 06/01/49)		2.50%		07/01/19	959,466,181	959,000,000
Issued 06/25/19, repurchase date 07/02/19 (Collateralized by U.S. Government Agency Securities valued at $366,581,735, 2.00% - 8.50%, due 08/25/19 - 08/15/60)		2.51%		07/02/19	359,175,212	359,000,000
JP MORGAN SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $360,500,000, 2.50% - 6.50%, due 06/01/26 - 06/01/49)		2.55%		07/01/19	350,074,375	350,000,000
Issued 06/26/19, repurchase date 07/03/19 (Collateralized by U.S. Government Agency Securities valued at $515,075,819, 2.50% - 6.00%, due 02/01/25 - 06/01/49)		2.65%		07/03/19	500,257,639	500,000,000
Issued 06/26/19, repurchase date 07/03/19 (Collateralized by U.S. Government Agency Securities valued at $115,376,984, 2.50% - 6.50%, due 08/01/25 - 05/20/49)		2.65%		07/03/19	112,057,711	112,000,000
MIZUHO SECURITIES USA LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $145,230,001, 3.01% - 6.00%, due 04/01/27 - 06/20/49)		2.52%		07/01/19	141,029,610	141,000,000
RBC DOMINION SECURITIES INC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $674,575,668, 0.00% - 4.50%, due 07/18/19 - 10/20/48)		2.50%		07/01/19	655,136,458	655,000,000
Issued 05/23/19, repurchase date 07/23/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $464,965,766, 2.13% - 4.50%, due 02/28/21 - 10/01/48)		2.40%		07/05/19	455,301,467	454,000,000
Issued 05/22/19, repurchase date 07/12/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $389,942,073, 1.38% - 4.00%, due 04/30/20 - 08/01/44)		2.40%		07/05/19	382,117,600	381,000,000
ROYAL BANK OF CANADA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $808,717,774, 2.78% - 5.00%, due 01/01/26 - 02/01/57)		2.49%		07/01/19	785,162,888	785,000,000
Issued 06/19/19, repurchase date 07/12/19 (Collateralized by U.S. Government Agency Securities valued at $242,419,597, 2.50% - 6.50%, due 07/15/28 - 04/01/49)		2.39%		07/05/19	235,249,622	235,000,000
Issued 06/17/19, repurchase date 07/12/19 (Collateralized by U.S. Government Agency Securities valued at $407,525,258, 2.17% - 7.50%, due 08/01/22 - 10/25/58)		2.39%		07/05/19	395,472,025	395,000,000

₂₇

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 06/13/19, repurchase date 07/15/19 (Collateralized by U.S. Government Agency Securities valued at $1,915,758,251, 2.50% - 6.96%, due 06/25/21 - 05/20/69)		2.40%		07/05/19	1,858,722,133	1,856,000,000
Issued 06/06/19, repurchase date 08/01/19 (Collateralized by U.S. Government Agency Securities valued at $796,060,907, 2.21% - 7.00%, due 04/01/21 - 07/20/67)		2.40%		07/05/19	771,488,667	770,000,000
WELLS FARGO SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $2,901,169,118, 2.50% - 5.50%, due 05/01/28 - 07/01/49)		2.52%		07/01/19	2,789,585,690	2,789,000,000
						14,612,000,000
U.S. Treasury Repurchase Agreements 3.0%
BANK OF NOVA SCOTIA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $65,293,393, 1.13% - 2.00%, due 11/30/20 - 02/28/21)		2.45%		07/01/19	64,013,067	64,000,000
BARCLAYS BANK PLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $543,198,009, 1.50% - 3.00%, due 05/15/20 - 02/15/49)		2.40%		07/01/19	532,547,038	532,440,550
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $556,015,881, 1.13% - 3.00%, due 02/28/21 - 02/15/49)		2.50%		07/01/19	545,113,542	545,000,000
BNP PARIBAS SA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $472,357,672, 0.50% - 2.88%, due 04/30/21 - 02/15/42)		2.48%		07/01/19	463,095,687	463,000,000
JP MORGAN SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $510,000,032, 1.63% - 5.38%, due 12/31/19 - 02/15/49)		2.53%		07/01/19	500,105,417	500,000,000
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $510,000,028, 1.38% - 5.25%, due 06/30/20 - 02/15/44)		2.53%		07/01/19	500,105,417	500,000,000
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $153,000,058, 1.50% - 3.63%, due 07/31/20 - 05/15/45)		2.53%		07/01/19	150,031,625	150,000,000
WELLS FARGO SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $194,860,613, 2.38%, due 04/30/26)		2.50%		07/01/19	191,039,792	191,000,000
						2,945,440,550

₂₈

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Other Repurchase Agreements** 4.0%
BNP PARIBAS SA
Issued 06/27/19, repurchase date 07/03/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $867,550,389, 1.75% - 12.90%, due 09/29/19 - 10/25/69)		2.50%		07/03/19	759,316,250	759,000,000
Issued 06/27/19, repurchase date 07/03/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $326,737,172, 0.00% - 27.94%, due 10/15/19 - 01/28/70)		2.52%		07/03/19	284,119,280	284,000,000
Issued 06/26/19, repurchase date 09/24/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $276,522,766, 2.09% - 7.65%, due 04/11/22 - 10/25/69)		2.50%		08/02/19	239,614,097	239,000,000
Issued 06/05/19, repurchase date 09/03/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $187,316,711, 3.85% - 8.75%, due 01/15/21 - 01/28/70)		2.68%		08/02/19	162,498,616	161,800,000
BOFA SECURITIES INC
Issued 06/13/19, repurchase date 09/12/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $460,000,001, 0.00% - 7.50%, due 10/25/28 - 01/27/47)		2.74%		08/02/19	401,522,222	400,000,000
JP MORGAN SECURITIES LLC
Issued 03/27/19, repurchase date 09/23/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $333,766,800, 0.00% - 10.70%, due 07/25/24 - 06/25/58)		3.00%		09/23/19	292,320,000	288,000,000
Issued 05/30/19, repurchase date 11/26/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $574,024,051, 0.00% - 11.64%, due 06/15/20 - 06/25/58)		2.87%		09/26/19	502,724,498	498,000,000
RBC CAPITAL MARKETS LLC
Issued 06/21/19, repurchase date 09/19/19 (Collateralized by U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $263,971,733, 0.00% - 9.77%, due 07/01/19 - 08/20/65)		2.50%		08/02/19	250,729,167	250,000,000
WELLS FARGO SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $150,180,819, 1.88% - 9.75%, due 07/01/19 - 12/31/99)		2.46%		07/01/19	143,029,315	143,000,000

₂₉

Schwab Prime Money Funds | Semiannual Report

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Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 06/24/19, repurchase date 07/01/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $99,798,878, 3.38% - 7.50%, due 10/15/20 - 04/01/54)		2.52%		07/01/19	95,046,550	95,000,000
Issued 04/22/19, repurchase date 07/22/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $345,411,424, 0.00% - 8.15%, due 07/05/19 - 04/25/56)		3.13%		07/22/19	300,357,759	298,000,000
Issued 04/23/19, repurchase date 10/25/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $180,842,300, 5.40% - 14.15%, due 10/25/23 - 04/26/49)		2.83%		10/01/19	156,961,740	155,000,000
Issued 04/23/19, repurchase date 10/25/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $181,025,501, 3.19% - 7.31%, due 07/17/23 - 04/25/56)		3.03%		10/01/19	157,100,379	155,000,000
Issued 04/22/19, repurchase date 10/21/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $344,446,745, 0.00% - 10.14%, due 03/16/20 - 02/26/57)		3.03%		10/01/19	299,022,325	295,000,000
						4,020,800,000
Total Repurchase Agreements
(Cost $21,578,240,550)						21,578,240,550

a	Credit-enhanced or liquidity-enhanced.
b	Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $23,791,994,173 or 23.9% of net assets.
c	VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly as well. The Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics.
*	Collateralized via U.S. Government Agency Securities or less frequently by higher rated U.S. Treasury Securities.
**	Collateralized via common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations or less frequently by higher rated U.S. Government Agency Securities and/ or U.S. Treasury Securities.

ABS —	Asset-backed securities
AUTH —	Authority
CNTY —	County
ETF —	Exchange-traded fund
GO —	General obligation
HFA —	Housing finance agency/authority
IDA —	Industrial development agency/authority
LIBOR —	London Interbank Offered Rate is the interest rate banks charge each other for short-term loans.
LOC —	Letter of credit
M/F —	Multi-family
RB —	Revenue bond
SIFMA —	Securities Industry and Financial Markets Association
SOFR —	Secured Overnight Financing Rate is published daily by the Federal Reserve Bank of New York and is based on the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
VRDN —	Variable rate demand note

At June 30, 2019, all of the fund’s investment securities were classified as Level 2. The breakdown of the fund’s investments into major categories is disclosed on the Portfolio Holdings. (See financial note 2(a) for additional information)

₃₀

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Schwab Value Advantage Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	1/1/19-6/30/19		1/1/18-12/31/18
Net investment income		$1,042,633,931	$922,141,124
Net realized gains (losses)	+	138,973	(164,307)
Increase in net assets from operations		1,042,772,904	921,976,817
Distributions to Shareholders
Investor Shares		(626,224,324)	(522,049,352)
Ultra Shares	+	(416,409,607)	(400,091,772)
Total distributions		($1,042,633,931)	($922,141,124)
Transactions in Fund Shares*
Shares Sold
Investor Shares		42,972,775,519	59,292,555,438
Ultra Shares	+	27,910,373,715	40,153,320,932
Total shares sold		70,883,149,234	99,445,876,370
Shares Reinvested
Investor Shares		461,746,276	425,137,746
Ultra Shares	+	312,481,622	327,411,432
Total shares reinvested		774,227,898	752,549,178
Shares Redeemed
Investor Shares		(29,287,995,363)	(26,952,054,314)
Ultra Shares	+	(20,088,418,126)	(23,538,075,824)
Total shares redeemed		(49,376,413,489)	(50,490,130,138)
Net transactions in fund shares		22,280,963,643	49,708,295,410
Net Assets
Beginning of period		77,275,355,044	27,567,223,941
Total increase	+	22,281,102,616	49,708,131,103
End of period		$99,556,457,660	$77,275,355,044

*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.

₃₃

Schwab Prime Money Funds | Semiannual Report

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Schwab Retirement Advantage Money Fund

Financial Statements

Financial Highlights

	1/1/19– 6/30/19*	1/1/18– 12/31/18	1/1/17– 12/31/17	1/1/16– 12/31/16	1/1/15– 12/31/15	1/1/14– 12/31/14
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.01 ¹	0.02 ¹	0.01 ¹	0.00 ¹^,²	0.00 ¹^,²	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	(0.00) ²	0.00 ²	0.00 ²	0.00 ²	0.00 ²
Total from investment operations	0.01	0.02	0.01	0.00 ²	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.01)	(0.02)	(0.01)	(0.00) ²	(0.00) ²	(0.00) ²
Distributions from net realized gains	—	—	(0.00) ²	(0.00) ²	—	—
Total distributions	(0.01)	(0.02)	(0.01)	(0.00) ²	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	1.13% ³	1.76%	0.77%	0.23%	0.01%	0.01%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.35% ⁴	0.35%	0.43% ⁵	0.46% ⁶	0.27% ⁶	0.21% ⁶
Gross operating expenses	0.61% ⁴	0.62%	0.66%	0.63%	0.61%	0.61%
Net investment income (loss)	2.26% ⁴	1.75%	0.77%	0.18%	0.01%	0.01%
Net assets, end of period (x 1,000,000)	$200	$189	$199	$252	$700	$741

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Not annualized.

⁴

Annualized.

⁵

Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

⁶

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation.

₃₄

Schwab Prime Money Funds | Semiannual Report

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Schwab Retirement Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 54.6% of net assets
Asset-Backed Commercial Paper 19.4%
ALPINE SECURITIZATION LLC	a,b	2.58%		08/14/19	1,000,000	1,000,000
	a,b	2.32%		09/30/19	2,000,000	1,988,322
ATLANTIC ASSET SECURITIZATION LLC	a,b	2.59%		07/11/19	1,000,000	999,286
	a,b	2.53%		08/27/19	500,000	498,013
BARTON CAPITAL SA	a,b	2.58%		08/13/19	1,000,000	996,942
BEDFORD ROW FUNDING CORP	a,b	2.28%		12/06/19	2,000,000	1,980,250
BENNINGTON STARK CAPITAL COMPANY LLC	a,b	2.53%		08/15/19	1,000,000	996,862
CAFCO LLC	a,b	2.56%		07/26/19	1,000,000	998,236
CHARIOT FUNDING LLC	a,b	2.89%		07/08/19	1,000,000	999,446
	a,b	2.87%		07/15/19	1,000,000	998,899
	a,b	2.62%		09/05/19	3,000,000	2,985,755
CHARTA LLC	a,b	2.56%		07/02/19	1,900,000	1,899,866
CRC FUNDING LLC	a,b	2.57%		07/19/19	1,000,000	998,725
	a,b	2.49%		08/23/19	1,000,000	996,364
CROWN POINT CAPITAL COMPANY LLC	a,b	2.56%		08/19/19	500,000	500,000
KELLS FUNDING LLC	a,b	2.55%		08/12/19	800,000	797,920
	a,b	2.57%		09/09/19	1,200,000	1,194,475
LEXINGTON PARKER CAPITAL COMPANY LLC	a,b	2.59%		07/03/19	1,000,000	999,857
LMA AMERICAS LLC	a,b	2.39%		07/01/19	1,000,000	1,000,000
	a,b	2.51%		09/04/19	1,000,000	995,504
MANHATTAN ASSET FUNDING COMPANY LLC	a,b	2.30%		12/11/19	1,000,000	989,722
METLIFE SHORT TERM FUNDING LLC	a,b	2.55%		07/15/19	1,000,000	999,016
	a,b	2.60%		10/16/19	2,000,000	1,984,723
	a,b	2.58%		10/28/19	2,000,000	1,983,142
NIEUW AMSTERDAM RECEIVABLES CORP	a,b	2.46%		09/04/19	1,000,000	995,594
OLD LINE FUNDING LLC	a,b	2.59%		10/24/19	1,000,000	991,822

₃₅

Schwab Prime Money Funds | Semiannual Report

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Schwab Retirement Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
RIDGEFIELD FUNDING COMPANY LLC	a,b	2.59%		07/16/19	1,000,000	998,929
	a,b	2.59%		07/17/19	500,000	499,429
	a,b	2.54%		08/28/19	500,000	497,970
VERSAILLES COMMERCIAL PAPER LLC	a,b	2.58%		07/01/19	1,000,000	1,000,000
	a,b	2.33%		09/23/19	1,000,000	994,587
VICTORY RECEIVABLES CORP	a,b	2.58%		07/02/19	3,000,000	2,999,787
						38,759,443
Certificates of Deposit 18.0%
BANK OF THE WEST		2.56%		07/17/19	900,000	900,000
CITIBANK NA (NEW YORK BRANCH)		2.57%		12/02/19	2,000,000	2,000,000
CREDIT SUISSE AG (NEW YORK BRANCH)		2.63%		08/27/19	1,000,000	1,000,000
		2.65%		09/25/19	1,500,000	1,500,000
HSBC BANK USA NA (NEW YORK BRANCH)		2.17%		12/24/19	1,000,000	1,000,000
LANDESBANK BADEN WUERTTEMBERG (NEW YORK BRANCH)		2.44%		07/10/19	1,000,000	1,000,000
MITSUBISHI UFJ TRUST AND BANKING CORPORATION (NEW YORK BRANCH)		2.53%		08/22/19	1,000,000	1,000,000
		2.53%		09/03/19	1,000,000	1,000,000
		2.50%		09/20/19	600,000	600,000
MIZUHO BANK LTD (NEW YORK BRANCH)		2.55%		07/29/19	1,000,000	1,000,000
		2.53%		08/26/19	2,000,000	2,000,000
MUFG BANK LTD (NEW YORK BRANCH)		2.55%		08/27/19	1,000,000	1,000,000
		2.52%		10/23/19	1,500,000	1,500,000
MUFG UNION BANK NA		2.15%		12/26/19	1,500,000	1,500,000
NORDEA BANK ABP (NEW YORK BRANCH)		2.61%		08/26/19	1,000,000	1,000,000
		2.51%		11/27/19	1,500,000	1,500,000
OVERSEA CHINESE BANKING CORPORATION LTD (NEW YORK BRANCH)		2.53%		09/06/19	500,000	500,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)		2.54%		08/15/19	2,000,000	2,000,000
		2.30%		12/12/19	2,000,000	2,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)		2.78%		07/22/19	2,000,000	2,000,000
SUMITOMO MITSUI TRUST BANK LTD (NEW YORK BRANCH)		2.56%		07/24/19	1,000,000	1,000,000
		2.32%		10/03/19	2,000,000	2,000,000
SVENSKA HANDELSBANKEN AB (NEW YORK BRANCH)		2.11%		01/02/20	2,000,000	2,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)		2.50%		08/27/19	100,000	100,000
		2.61%		09/09/19	2,000,000	2,000,000
		2.39%		11/06/19	2,000,000	2,000,000
		2.17%		06/19/20	1,000,000	1,000,000
						36,100,000
Financial Company Commercial Paper 5.2%
CREDIT SUISSE AG (NEW YORK BRANCH)		2.67%		09/05/19	180,000	179,132
DBS BANK LTD	b	2.63%		10/02/19	500,000	496,655
DNB BANK ASA	b	2.48%		08/29/19	2,000,000	1,991,937

₃₆

Schwab Prime Money Funds | Semiannual Report

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Schwab Retirement Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
FEDERATION DES CAISSES DESJARDINS DU QUEBEC	b	2.51%		08/16/19	1,900,000	1,893,955
HSBC USA INC	b	2.66%		09/05/19	1,400,000	1,393,275
JP MORGAN SECURITIES LLC		2.90%		07/09/19	100,000	99,937
NATIONAL AUSTRALIA BANK LIMITED	b	2.81%		07/09/19	1,000,000	999,383
NATIONWIDE BUILDING SOCIETY	b	2.33%		09/26/19	1,000,000	994,393
NRW BANK	b	2.55%		07/02/19	1,000,000	999,930
	b	2.56%		07/31/19	1,000,000	997,883
SUMITOMO MITSUI BANKING CORPORATION	b	2.64%		08/19/19	400,000	398,579
						10,445,059
Non-Financial Company Commercial Paper 0.5%
TOYOTA FINANCE AUSTRALIA LTD		2.52%		08/15/19	1,000,000	996,875
Non-Negotiable Time Deposits 11.0%
ABN AMRO BANK NV (AMSTERDAM BRANCH)		2.39%		07/01/19	2,000,000	2,000,000
		2.41%		07/02/19	1,000,000	1,000,000
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (LONDON BRANCH)		2.45%		07/02/19	4,000,000	4,000,000
		2.45%		07/03/19	2,000,000	2,000,000
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)		2.35%		07/01/19	3,000,000	3,000,000
DBS BANK LTD (SINGAPORE BRANCH)		2.50%		07/03/19	2,000,000	2,000,000
DNB BANK ASA (GRAND CAYMAN BRANCH)		2.35%		07/01/19	2,000,000	2,000,000
MIZUHO BANK LTD (NEW YORK BRANCH)		2.40%		07/01/19	1,000,000	1,000,000
NATIONAL AUSTRALIA BANK LTD (GRAND CAYMAN BRANCH)		2.35%		07/01/19	1,000,000	1,000,000
NATIONAL BANK OF CANADA (MONTREAL BRANCH)		2.45%		07/03/19	2,000,000	2,000,000
NRW BANK (DUSSELDORF BRANCH)		2.42%		07/02/19	1,000,000	1,000,000
TORONTO-DOMINION BANK/THE (TORONTO BRANCH)		2.45%		07/03/19	1,000,000	1,000,000
						22,000,000
Other Instrument 0.5%
BANK OF AMERICA NA		2.30%		01/07/20	1,000,000	1,000,000
Total Fixed-Rate Obligations
(Cost $109,301,377)						109,301,377

Variable-Rate Obligations 23.9% of net assets
Asset-Backed Commercial Paper 1.7%
COLLATERALIZED COMMERCIAL PAPER CO LLC
(3 mo. USD-LIBOR + 0.03%)	a	2.47%		09/12/19	1,900,000	1,900,000
COLLATERALIZED COMMERCIAL PAPER II CO LLC
(3 mo. USD-LIBOR + 0.13%)	a,b	2.73%		07/03/19	1,500,000	1,500,000
						3,400,000

₃₇

Schwab Prime Money Funds | Semiannual Report

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Schwab Retirement Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Financial Company Commercial Paper 5.4%
COMMONWEALTH BANK OF AUSTRALIA
(1 mo. USD-LIBOR + 0.12%)	b	2.54%	07/08/19	08/07/19	3,000,000	3,000,032
(1 mo. USD-LIBOR + 0.10%)	b	2.51%	07/15/19	08/13/19	1,900,000	1,900,000
JP MORGAN SECURITIES LLC
(1 mo. USD-LIBOR + 0.15%)	b	2.57%	07/08/19	08/06/19	1,000,000	1,000,000
OVERSEA-CHINESE BANKING CORPORATION LTD
(3 mo. USD-LIBOR + 0.03%)	b	2.50%	09/06/19	12/06/19	900,000	900,093
ROYAL BANK OF CANADA
(3 mo. USD-LIBOR + 0.01%)	b	2.53%	09/03/19	12/02/19	1,000,000	1,000,000
(1 mo. USD-LIBOR + 0.14%)	b	2.54%	07/24/19	01/24/20	1,100,000	1,100,000
(3 mo. USD-LIBOR + 0.05%)	b	2.57%	08/27/19	02/26/20	1,000,000	1,000,000
UBS AG (LONDON BRANCH)
(1 mo. USD-LIBOR + 0.15%)	b	2.56%	07/15/19	11/13/19	1,000,000	1,000,000
						10,900,125
Certificates of Deposit 11.6%
BANK OF NOVA SCOTIA (HOUSTON BRANCH)
(3 mo. USD-LIBOR + 0.02%)		2.54%	08/27/19	11/27/19	2,000,000	2,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.13%)		2.55%	07/08/19	02/07/20	1,100,000	1,100,000
(SOFR + 0.16%)		2.58%	07/01/19	03/13/20	1,000,000	1,000,000
COMMONWEALTH BANK OF AUSTRALIA (LONDON BRANCH)
(1 mo. USD-LIBOR + 0.10%)		2.51%	07/12/19	08/12/19	1,000,000	1,000,000
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.06%)		2.66%		07/03/19	2,400,000	2,400,000
(1 mo. USD-LIBOR + 0.09%)		2.47%	07/18/19	11/18/19	1,000,000	1,000,000
HSBC BANK USA NA (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.50%		09/04/19	200,000	200,000
MUFG BANK LTD (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.58%	07/29/19	10/29/19	1,000,000	1,000,000
NORDEA BANK ABP (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.10%)		2.50%	07/24/19	10/24/19	1,000,000	1,000,000
ROYAL BANK OF CANADA (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.11%)		2.49%	07/22/19	02/20/20	1,500,000	1,500,000
(1 mo. USD-LIBOR + 0.12%)		2.56%	07/03/19	03/03/20	1,000,000	1,000,000
(3 mo. USD-LIBOR + 0.06%)		2.66%	07/17/19	04/17/20	300,000	300,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.34%	10/02/19	01/02/20	1,000,000	1,000,000
SVENSKA HANDELSBANKEN AB (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.52%	08/19/19	11/19/19	1,000,000	1,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.03%)		2.37%	09/24/19	03/24/20	900,000	900,000

₃₈

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Retirement Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
WELLS FARGO BANK NA
(1 mo. USD-LIBOR + 0.23%)		2.62%		07/16/19	1,000,000	1,000,000
(3 mo. USD-LIBOR + 0.02%)		2.56%	08/12/19	11/12/19	2,000,000	2,000,000
(3 mo. USD-LIBOR + 0.03%)		2.61%	07/24/19	01/24/20	900,000	900,000
(3 mo. USD-LIBOR + 0.03%)		2.38%	09/25/19	03/25/20	2,000,000	2,000,000
WESTPAC BANKING CORPORATION (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.18%)		2.70%	08/27/19	11/25/19	1,000,000	1,000,866
						23,300,866
Variable Rate Demand Notes 2.5%
EDWARD-ELMHURST HEALTHCARE
TAXABLE BONDS SERIES 2018 (LOC: BARCLAYS BANK PLC)	c	2.40%		07/05/19	1,000,000	1,000,000
HOWARD UNIV
TAXABLE BONDS SERIES 2016 (LOC: BARCLAYS BANK PLC)	c	2.40%		07/05/19	1,895,000	1,895,000
NEW YORK STATE HFA
TAXABLE HOUSING RB (555 10TH AVE) SERIES 2015B (LOC: LANDESBANK HESSEN THUERINGEN GIROZENTRALE)	c	2.41%		07/05/19	1,000,000	1,000,000
TENDERFOOT SEASONAL HOUSING, LLC
TAXABLE NOTES SERIES 2000B (LOC: WELLS FARGO BANK NA)	c	2.50%		07/05/19	1,000,000	1,000,000
						4,895,000
Other Instrument 0.8%
BANK OF AMERICA NA
(3 mo. USD-LIBOR + 0.02%)		2.57%	08/12/19	02/10/20	1,500,000	1,500,000
Non-Financial Company Commercial Paper 1.9%
TOYOTA CREDIT CANADA INC
(3 mo. USD-LIBOR + 0.05%)		2.52%	09/06/19	11/14/19	1,900,000	1,900,000
TOYOTA MOTOR CREDIT CORP
(1 mo. USD-LIBOR + 0.15%)		2.53%	07/22/19	02/14/20	500,000	500,000
TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.
(3 mo. USD-LIBOR + 0.05%)		2.57%	08/27/19	11/22/19	1,400,000	1,400,000
						3,800,000
Total Variable-Rate Obligations
(Cost $47,795,991)						47,795,991
Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 21.5% of net assets
U.S. Government Agency Repurchase Agreements* 15.9%
BARCLAYS BANK PLC
Issued 06/25/19, repurchase date 07/02/19 (Collateralized by U.S. Treasury Securities valued at $2,041,065, 3.00%, due 11/15/45)		2.52%		07/02/19	2,000,980	2,000,000

₃₉

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Retirement Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 06/26/19, repurchase date 07/03/19 (Collateralized by U.S. Treasury Securities valued at $2,041,065, 3.00%, due 11/15/45)		2.54%		07/03/19	2,000,988	2,000,000
BOFA SECURITIES INC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $2,060,001, 4.00%, due 04/01/49)		2.50%		07/01/19	2,000,417	2,000,000
JP MORGAN SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $15,450,001, 4.00%, due 05/20/34)		2.55%		07/01/19	15,003,188	15,000,000
MIZUHO SECURITIES USA LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $1,020,029, 2.88%, due 04/30/25)		2.52%		07/01/19	1,000,210	1,000,000
RBC DOMINION SECURITIES INC
Issued 05/22/19, repurchase date 07/12/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $1,023,476, 1.13% - 4.00%, due 01/15/21 - 08/01/44)		2.40%		07/05/19	1,002,933	1,000,000
Issued 05/23/19, repurchase date 07/23/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $1,024,157, 1.13% - 4.00%, due 01/15/21 - 08/01/44)		2.40%		07/05/19	1,002,867	1,000,000
ROYAL BANK OF CANADA
Issued 06/06/19, repurchase date 08/01/19 (Collateralized by U.S. Government Agency Securities valued at $2,067,691, 2.94% - 6.50%, due 07/15/28 - 03/01/49)		2.40%		07/05/19	2,003,867	2,000,000
Issued 06/13/19, repurchase date 07/15/19 (Collateralized by U.S. Government Agency Securities valued at $4,128,790, 3.50% - 5.00%, due 01/25/40 - 04/01/49)		2.40%		07/05/19	4,005,867	4,000,000
WELLS FARGO SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $2,080,438, 4.00%, due 07/01/49)		2.52%		07/01/19	2,000,420	2,000,000
						32,000,000
U.S. Treasury Repurchase Agreement 0.8%
BARCLAYS BANK PLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $1,620,472, 3.75%, due 11/15/43)		2.40%		07/01/19	1,588,585	1,588,267
Other Repurchase Agreements** 4.8%
BNP PARIBAS SA
Issued 06/27/19, repurchase date 07/03/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $2,300,243, 2.65% - 6.30%, due 01/11/23 - 12/29/49)		2.50%		07/03/19	2,000,833	2,000,000

₄₀

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Retirement Advantage Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 06/27/19, repurchase date 07/03/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $1,151,056, 7.00%, due 12/15/21)		2.52%		07/03/19	1,000,420	1,000,000
Issued 06/05/19, repurchase date 09/03/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $694,733, 7.00%, due 12/15/21)		2.68%		08/02/19	602,591	600,000
BOFA SECURITIES INC
Issued 06/13/19, repurchase date 09/12/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $2,300,001, 3.00%, due 10/25/58)		2.74%		08/02/19	2,007,611	2,000,000
JP MORGAN SECURITIES LLC
Issued 03/27/19, repurchase date 09/23/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $2,317,825, 2.70% - 9.03%, due 04/25/20 - 04/25/36)		3.00%		09/23/19	2,030,000	2,000,000
WELLS FARGO SECURITIES LLC
Issued 04/22/19, repurchase date 07/22/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $1,159,099, 4.59%, due 01/19/38)		3.13%		07/22/19	1,007,912	1,000,000
Issued 04/22/19, repurchase date 10/21/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $1,167,616, 0.00% - 8.42%, due 01/17/20 - 03/09/45)		3.03%		10/01/19	1,013,635	1,000,000
						9,600,000
Total Repurchase Agreements
(Cost $43,188,267)						43,188,267

a	Credit-enhanced or liquidity-enhanced.
b	Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $61,325,558 or 30.6% of net assets.
c	VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly as well. The Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics.
*	Collateralized via U.S. Government Agency Securities or less frequently by higher rated U.S. Treasury Securities.
**	Collateralized via common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations or less frequently by higher rated U.S. Government Agency Securities and/ or U.S. Treasury Securities.

ABS —	Asset-backed securities
ETF —	Exchange-traded fund
HFA —	Housing finance agency/authority
LIBOR —	London Interbank Offered Rate is the interest rate banks charge each other for short-term loans.
LOC —	Letter of credit
RB —	Revenue bond
SIFMA —	Securities Industry and Financial Markets Association
SOFR —	Secured Overnight Financing Rate is published daily by the Federal Reserve Bank of New York and is based on the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
VRDN —	Variable rate demand note

₄₁

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Investor Money Fund

Financial Statements

Financial Highlights

	1/1/19– 6/30/19*	1/1/18– 12/31/18	1/1/17– 12/31/17	1/1/16– 12/31/16	1/1/15– 12/31/15	1/1/14– 12/31/14
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.01 ¹	0.02 ¹	0.01 ¹	0.00 ¹^,²	0.00 ¹^,²	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	(0.00) ²	—	0.00 ²	(0.00) ²	0.00 ²
Total from investment operations	0.01	0.02	0.01	0.00 ²	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.01)	(0.02)	(0.01)	(0.00) ²	(0.00) ²	(0.00) ²
Distributions from net realized gains	—	—	—	(0.00) ²	—	—
Total distributions	(0.01)	(0.02)	(0.01)	(0.00) ²	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	1.13% ³	1.77%	0.73%	0.13%	0.01%	0.01%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.35% ⁴	0.35%	0.48% ⁵^,⁶	0.55% ⁵	0.27% ⁵	0.21% ⁵
Gross operating expenses	0.55% ⁴	0.57%	0.64%	0.65%	0.64%	0.64%
Net investment income (loss)	2.27% ⁴	1.75%	0.73%	0.11%	0.01%	0.01%
Net assets, end of period (x 1,000,000)	$602	$547	$568	$607	$1,025	$939

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Not annualized.

⁴

Annualized.

⁵

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation.

⁶

Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

₄₅

Schwab Prime Money Funds | Semiannual Report

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Schwab Investor Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 55.5% of net assets
Asset-Backed Commercial Paper 16.1%
ALPINE SECURITIZATION LLC	a,b	2.58%		08/14/19	2,000,000	2,000,000
	a,b	2.32%		09/30/19	4,000,000	3,976,643
ATLANTIC ASSET SECURITIZATION LLC	a,b	2.40%		07/01/19	1,000,000	1,000,000
	a,b	2.59%		07/11/19	5,000,000	4,996,431
BARTON CAPITAL SA	a,b	2.60%		07/01/19	1,000,000	1,000,000
	a,b	2.45%		09/04/19	300,000	298,684
	a,b	2.31%		09/26/19	3,100,000	3,082,769
BEDFORD ROW FUNDING CORP	a,b	2.28%		12/06/19	2,000,000	1,980,250
BENNINGTON STARK CAPITAL COMPANY LLC	a,b	2.59%		07/09/19	2,000,000	1,998,858
	a,b	2.53%		08/02/19	1,500,000	1,496,640
	a,b	2.58%		08/06/19	1,000,000	997,440
CAFCO LLC	a,b	2.56%		07/26/19	2,000,000	1,996,472
	a,b	2.63%		10/01/19	1,500,000	1,490,072
CHARIOT FUNDING LLC	a,b	2.87%		07/15/19	1,500,000	1,498,349
	a,b	2.56%		08/12/19	5,000,000	4,985,183
	a,b	2.62%		09/05/19	4,000,000	3,981,007
CHARTA LLC	a,b	2.50%		08/26/19	3,000,000	2,988,427
	a,b	2.34%		12/03/19	2,000,000	1,980,108
	a,b	2.28%		12/16/19	900,000	890,550
COLLATERALIZED COMMERCIAL PAPER CO LLC	a	2.31%		12/13/19	850,000	841,118
	a	2.31%		12/16/19	2,000,000	1,978,720
CRC FUNDING LLC	a,b	2.57%		07/19/19	2,000,000	1,997,450
	a,b	2.49%		08/23/19	3,000,000	2,989,091
CROWN POINT CAPITAL COMPANY LLC	a,b	2.40%		07/01/19	3,000,000	3,000,000
	a,b	2.56%		08/19/19	2,000,000	2,000,000
	a,b	2.35%		09/30/19	2,000,000	2,000,000
GOTHAM FUNDING CORP	a,b	2.57%		08/01/19	200,000	199,561

₄₆

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Investor Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
KELLS FUNDING LLC	a,b	2.57%		09/09/19	800,000	796,317
	a,b	2.41%		09/26/19	2,000,000	1,988,847
	a,b	2.39%		09/27/19	1,000,000	994,404
	a,b	2.28%		12/17/19	1,000,000	989,750
LEXINGTON PARKER CAPITAL COMPANY LLC	a,b	2.59%		07/03/19	2,000,000	1,999,714
LMA AMERICAS LLC	a,b	2.39%		07/01/19	4,000,000	4,000,000
	a,b	2.51%		09/04/19	2,000,000	1,991,008
MANHATTAN ASSET FUNDING COMPANY LLC	a,b	2.30%		12/11/19	1,000,000	989,722
Matchpoint Finance PLC	a,b	2.39%		09/10/19	1,000,000	995,306
METLIFE SHORT TERM FUNDING LLC	a,b	2.60%		10/16/19	5,000,000	4,961,807
	a,b	2.58%		10/28/19	900,000	892,414
OLD LINE FUNDING LLC	a,b	2.59%		10/24/19	6,000,000	5,950,933
RIDGEFIELD FUNDING COMPANY LLC	a,b	2.59%		07/17/19	750,000	749,143
	a,b	2.54%		08/20/19	1,000,000	996,500
	a,b	2.54%		08/28/19	1,000,000	995,940
THUNDER BAY FUNDING LLC	a,b	2.26%		10/15/19	1,000,000	993,404
VERSAILLES COMMERCIAL PAPER LLC	a,b	2.58%		07/01/19	1,000,000	1,000,000
	a,b	2.51%		08/01/19	2,000,000	1,995,694
	a,b	2.33%		09/23/19	2,000,000	1,989,173
VICTORY RECEIVABLES CORP	a,b	2.58%		07/02/19	3,000,000	2,999,787
	a,b	2.53%		10/01/19	1,000,000	993,586
						96,907,272
Financial Company Commercial Paper 5.6%
BANCO SANTANDER SA (NEW YORK BRANCH)		2.39%		09/06/19	3,000,000	2,986,712
CANADIAN IMPERIAL BANK OF COMMERCE	b	2.64%		08/23/19	5,000,000	4,980,861
CREDIT SUISSE AG (NEW YORK BRANCH)		2.67%		09/05/19	720,000	716,528
DBS BANK LTD	b	2.63%		10/02/19	3,000,000	2,979,928
FEDERATION DES CAISSES DESJARDINS DU QUEBEC	b	2.59%		07/16/19	570,000	569,390
HSBC USA INC	b	2.34%		12/06/19	1,000,000	989,840
JP MORGAN SECURITIES LLC		2.90%		07/09/19	400,000	399,746
LANDESBANK BADEN WUERTTEMBERG (NEW YORK BRANCH)		2.43%		07/02/19	5,000,000	4,999,662
MITSUBISHI UFJ TRUST AND BANKING CORP (SINGAPORE BRANCH)	b	2.60%		07/01/19	2,000,000	2,000,000
NATIONAL AUSTRALIA BANK LIMITED	b	2.81%		07/09/19	5,000,000	4,996,917
NATIONWIDE BUILDING SOCIETY	b	2.33%		09/26/19	3,000,000	2,983,180
NRW BANK	b	2.55%		07/02/19	2,000,000	1,999,859
SUMITOMO MITSUI BANKING CORPORATION	b	2.64%		08/19/19	2,000,000	1,992,895
SUMITOMO MITSUI TRUST BANK LTD (SINGAPORE BRANCH)	b	2.35%		10/01/19	1,500,000	1,491,068
						34,086,586
Non-Financial Company Commercial Paper 0.5%
TOYOTA FINANCE AUSTRALIA LTD		2.52%		08/15/19	3,000,000	2,990,625

₄₇

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Investor Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Certificates of Deposit 20.0%
BANK OF THE WEST		2.56%		07/17/19	2,000,000	2,000,000
BAYERISCHE LANDESBANK (NEW YORK BRANCH)		2.55%		07/12/19	1,500,000	1,500,000
BNP PARIBAS (NEW YORK BRANCH)		2.28%		12/09/19	3,000,000	3,000,000
BRANCH BANKING AND TRUST COMPANY		2.39%		07/02/19	5,000,000	5,000,000
		2.40%		07/05/19	4,000,000	4,000,000
CITIBANK NA (NEW YORK BRANCH)		2.57%		12/02/19	8,000,000	8,000,000
CREDIT AGRICOLE SA (LONDON BRANCH)		2.31%		10/01/19	2,000,000	2,000,025
CREDIT SUISSE AG (NEW YORK BRANCH)		2.65%		09/25/19	5,000,000	5,000,000
LANDESBANK BADEN WUERTTEMBERG (NEW YORK BRANCH)		2.44%		07/10/19	900,000	900,000
LANDESBANK HESSEN THUERINGEN GIROZENTRALE (NEW YORK BRANCH)		2.40%		07/03/19	3,000,000	3,000,000
		2.40%		07/08/19	1,000,000	999,999
MITSUBISHI UFJ TRUST AND BANKING CORPORATION (NEW YORK BRANCH)		2.53%		08/22/19	5,000,000	5,000,000
		2.50%		09/20/19	700,000	700,000
MIZUHO BANK LTD (NEW YORK BRANCH)		2.57%		07/17/19	2,000,000	2,000,000
		2.55%		07/29/19	2,000,000	2,000,000
		2.53%		08/26/19	3,000,000	3,000,000
		2.49%		09/12/19	2,000,000	2,000,000
MUFG BANK LTD (NEW YORK BRANCH)		2.37%		10/23/19	3,000,000	3,000,000
		2.52%		10/23/19	3,500,000	3,500,000
		2.59%		10/31/19	3,000,000	3,000,000
		2.60%		10/31/19	5,000,000	5,000,000
MUFG UNION BANK NA		2.32%		12/09/19	3,000,000	3,000,000
		2.29%		12/17/19	1,000,000	1,000,000
		2.15%		12/26/19	2,000,000	2,000,000
NORDEA BANK ABP (NEW YORK BRANCH)		2.61%		08/26/19	4,000,000	4,000,000
		2.33%		12/06/19	1,500,000	1,500,000
NORINCHUKIN BANK (NEW YORK BRANCH)		2.42%		07/01/19	2,000,000	2,000,000
OVERSEA CHINESE BANKING CORPORATION LTD (NEW YORK BRANCH)		2.53%		09/06/19	5,000,000	5,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)		2.32%		12/09/19	1,000,000	1,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)		2.78%		07/22/19	5,000,000	5,000,000
SUMITOMO MITSUI TRUST BANK LTD (NEW YORK BRANCH)		2.55%		08/02/19	5,500,000	5,500,000
		2.32%		10/03/19	5,000,000	5,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)		2.50%		08/27/19	300,000	300,000
		2.61%		09/09/19	5,000,000	5,000,000
		2.60%		10/15/19	7,000,000	7,000,000
		2.39%		11/06/19	5,000,000	5,000,000
		2.17%		06/19/20	600,000	600,000
US BANK NATIONAL ASSOCIATION		2.17%		12/02/19	3,000,000	3,000,000
						120,500,024

₄₈

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Investor Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Non-Negotiable Time Deposits 12.6%
ABN AMRO BANK NV (AMSTERDAM BRANCH)		2.39%		07/01/19	8,000,000	8,000,000
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (LONDON BRANCH)		2.45%		07/02/19	6,000,000	6,000,000
		2.45%		07/03/19	12,000,000	12,000,000
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)		2.35%		07/01/19	10,000,000	10,000,000
DBS BANK LTD (SINGAPORE BRANCH)		2.50%		07/03/19	1,000,000	1,000,000
DNB BANK ASA (GRAND CAYMAN BRANCH)		2.35%		07/01/19	7,000,000	7,000,000
MIZUHO BANK LTD (NEW YORK BRANCH)		2.40%		07/01/19	3,000,000	3,000,000
NATIONAL AUSTRALIA BANK LTD (GRAND CAYMAN BRANCH)		2.35%		07/01/19	3,000,000	3,000,000
NATIONAL BANK OF CANADA (MONTREAL BRANCH)		2.45%		07/03/19	4,000,000	4,000,000
NRW BANK (DUSSELDORF BRANCH)		2.42%		07/02/19	6,000,000	6,000,000
ROYAL BANK OF CANADA (TORONTO BRANCH)		2.45%		07/03/19	4,000,000	4,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)		2.35%		07/01/19	7,000,000	7,000,000
TORONTO-DOMINION BANK/THE (TORONTO BRANCH)		2.45%		07/03/19	5,000,000	5,000,000
						76,000,000
Other Instruments 0.7%
BANK OF AMERICA NA		2.56%		11/04/19	2,000,000	2,000,000
		2.30%		01/07/20	2,000,000	2,000,000
						4,000,000
Total Fixed-Rate Obligations
(Cost $334,484,507)						334,484,507

Variable-Rate Obligations 24.8% of net assets
Asset-Backed Commercial Paper 1.4%
COLLATERALIZED COMMERCIAL PAPER CO LLC
(3 mo. USD-LIBOR + 0.03%)	a	2.47%		09/12/19	3,100,000	3,100,000
COLLATERALIZED COMMERCIAL PAPER II CO LLC
(3 mo. USD-LIBOR + 0.13%)	a,b	2.73%		07/03/19	5,000,000	5,000,000
						8,100,000
Financial Company Commercial Paper 4.1%
COMMONWEALTH BANK OF AUSTRALIA
(1 mo. USD-LIBOR + 0.12%)	b	2.54%	07/08/19	08/07/19	5,000,000	5,000,054
(1 mo. USD-LIBOR + 0.10%)	b	2.51%	07/15/19	08/13/19	2,000,000	2,000,000
HSBC USA INC
(1 mo. USD-LIBOR + 0.12%)	b	2.50%	07/18/19	11/18/19	2,500,000	2,500,000
JP MORGAN SECURITIES LLC
(1 mo. USD-LIBOR + 0.15%)	b	2.57%	07/08/19	08/06/19	5,000,000	5,000,000
OVERSEA-CHINESE BANKING CORPORATION LTD
(3 mo. USD-LIBOR + 0.03%)	b	2.50%	09/06/19	12/06/19	2,100,000	2,100,216

₄₉

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Investor Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
ROYAL BANK OF CANADA
(3 mo. USD-LIBOR + 0.01%)	b	2.53%	09/03/19	12/02/19	1,000,000	1,000,000
(3 mo. USD-LIBOR + 0.05%)	b	2.57%	08/27/19	02/26/20	5,000,000	5,000,000
UBS AG (LONDON BRANCH)
(1 mo. USD-LIBOR + 0.15%)	b	2.56%	07/15/19	11/13/19	2,000,000	2,000,000
						24,600,270
Certificates of Deposit 14.4%
BANK OF NOVA SCOTIA (HOUSTON BRANCH)
(3 mo. USD-LIBOR + 0.02%)		2.54%	08/27/19	11/27/19	3,000,000	3,000,000
(3 mo. USD-LIBOR + 0.02%)		2.63%	07/02/19	01/02/20	5,000,000	5,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.13%)		2.55%	07/08/19	02/07/20	900,000	900,000
(SOFR + 0.16%)		2.58%	07/01/19	03/13/20	3,000,000	3,000,000
COMMONWEALTH BANK OF AUSTRALIA (LONDON BRANCH)
(1 mo. USD-LIBOR + 0.10%)		2.51%	07/12/19	08/12/19	5,000,000	5,000,000
COMMONWEALTH BANK OF AUSTRALIA (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.30%)		2.74%		07/03/19	5,000,000	5,000,000
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.09%)		2.47%	07/18/19	11/18/19	9,000,000	9,000,000
(1 mo. USD-LIBOR + 0.12%)		2.51%	07/17/19	02/18/20	2,000,000	2,000,000
DNB BANK ASA (LONDON BRANCH)
(3 mo. USD-LIBOR + 0.03%)		2.61%		07/10/19	2,000,000	2,000,000
DNB BANK ASA (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.10%)		2.52%	07/08/19	11/06/19	3,000,000	3,000,000
HSBC BANK USA NA (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.50%		09/04/19	4,000,000	4,000,000
OVERSEA CHINESE BANKING CORPORATION LTD (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.52%	08/19/19	11/19/19	900,000	900,000
ROYAL BANK OF CANADA (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.11%)		2.49%	07/22/19	02/20/20	3,500,000	3,500,000
(1 mo. USD-LIBOR + 0.11%)		2.51%	07/29/19	02/28/20	2,000,000	2,000,000
(3 mo. USD-LIBOR + 0.06%)		2.66%	07/17/19	04/17/20	500,000	500,000
(1 mo. USD-LIBOR + 0.16%)		2.55%	07/15/19	05/15/20	2,000,000	2,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)
(1 mo. USD-LIBOR + 0.10%)		2.50%	07/29/19	11/27/19	4,000,000	4,000,000
STATE STREET BANK AND TRUST COMPANY
(1 mo. USD-LIBOR + 0.10%)		2.52%	07/08/19	10/07/19	3,000,000	3,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.34%	10/02/19	01/02/20	3,000,000	3,000,000
SVENSKA HANDELSBANKEN AB (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		2.52%	08/19/19	11/19/19	5,500,000	5,500,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.03%)		2.37%	09/24/19	03/24/20	100,000	100,000

₅₀

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Investor Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
WELLS FARGO BANK NA
(1 mo. USD-LIBOR + 0.23%)		2.62%		07/16/19	2,000,000	2,000,000
(3 mo. USD-LIBOR + 0.02%)		2.56%	08/12/19	11/12/19	5,000,000	5,000,000
(3 mo. USD-LIBOR + 0.03%)		2.48%	09/09/19	12/09/19	900,000	900,000
(3 mo. USD-LIBOR + 0.03%)		2.61%	07/24/19	01/24/20	7,000,000	7,000,000
(3 mo. USD-LIBOR + 0.03%)		2.61%	08/05/19	02/04/20	700,000	700,000
(3 mo. USD-LIBOR + 0.03%)		2.38%	09/25/19	03/25/20	3,000,000	3,000,000
WESTPAC BANKING CORPORATION (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.18%)		2.70%	08/27/19	11/25/19	2,000,000	2,001,732
						87,001,732
Variable Rate Demand Notes 2.1%
BLUE MOUNTAIN ENTERPRISES, LLC
VARIABLE RATE DEMAND BONDS SERIES 2013 (LOC: WELLS FARGO BANK NA)	c	2.42%		07/05/19	3,090,000	3,090,000
CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK
TAXABLE RB (CAPITAL CORRUGATED) SERIES 2016B (LOC: COMERICA BANK)	c	2.41%		07/05/19	2,120,000	2,120,000
EAGLE CNTY
RB (BC HOUSING) SERIES 1997B (LOC: WELLS FARGO BANK NA)	c	2.50%		07/05/19	1,500,000	1,500,000
HARTFORD HEALTHCARE CORP
TAXABLE BONDS SERIES C (LOC: JPMORGAN CHASE BANK NA)	c	2.39%		07/05/19	1,000,000	1,000,000
HOWARD UNIV
TAXABLE BONDS SERIES 2016 (LOC: BARCLAYS BANK PLC)	c	2.40%		07/05/19	950,000	950,000
LABCON NORTH AMERICA
TAXABLE BONDS SERIES 2010 (LOC: BANK OF THE WEST)	c	2.41%		07/05/19	1,095,000	1,095,000
NEW YORK STATE HFA
TAXABLE HOUSING RB (555 10TH AVE) SERIES 2015B (LOC: LANDESBANK HESSEN THUERINGEN GIROZENTRALE)	c	2.41%		07/05/19	2,000,000	2,000,000
TENDERFOOT SEASONAL HOUSING, LLC
TAXABLE NOTES SERIES 2000B (LOC: WELLS FARGO BANK NA)	c	2.50%		07/05/19	1,000,000	1,000,000
						12,755,000
Other Instrument 0.9%
BANK OF AMERICA NA
(3 mo. USD-LIBOR + 0.02%)		2.57%	08/12/19	02/10/20	5,500,000	5,500,000
Non-Financial Company Commercial Paper 1.9%
TOYOTA CREDIT CANADA INC
(3 mo. USD-LIBOR + 0.05%)		2.52%	09/06/19	11/22/19	4,000,000	4,000,000
TOYOTA MOTOR CREDIT CORP
(1 mo. USD-LIBOR + 0.15%)		2.55%	07/24/19	02/11/20	1,500,000	1,500,000
(1 mo. USD-LIBOR + 0.15%)		2.53%	07/22/19	02/14/20	4,500,000	4,500,000

₅₁

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Investor Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.
(3 mo. USD-LIBOR + 0.05%)		2.57%	08/27/19	11/22/19	1,600,000	1,600,000
						11,600,000
Total Variable-Rate Obligations
(Cost $149,557,002)						149,557,002
Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 19.5% of net assets
U.S. Government Agency Repurchase Agreements* 15.3%
BARCLAYS BANK PLC
Issued 06/25/19, repurchase date 07/02/19 (Collateralized by U.S. Treasury Securities valued at $6,123,013, 2.00%, due 11/15/26)		2.52%		07/02/19	6,002,940	6,000,000
Issued 06/26/19, repurchase date 07/03/19 (Collateralized by U.S. Treasury Securities valued at $6,123,034, 2.00% - 3.00%, due 11/15/26 - 11/15/45)		2.54%		07/03/19	6,002,963	6,000,000
BMO CAPITAL MARKETS CORP
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $1,030,215, 3.76% - 4.50%, due 05/01/49 - 06/01/49)		2.50%		07/01/19	1,000,208	1,000,000
BOFA SECURITIES INC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $3,090,000, 4.00%, due 04/01/49)		2.50%		07/01/19	3,000,625	3,000,000
GOLDMAN SACHS & CO LLC
Issued 06/24/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $1,020,000, 3.50% - 6.00%, due 04/20/22 - 02/20/43)		2.50%		07/01/19	1,000,486	1,000,000
JP MORGAN SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $51,500,000, 3.00% - 5.00%, due 09/01/30 - 05/01/49)		2.55%		07/01/19	50,010,625	50,000,000
MIZUHO SECURITIES USA LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $3,060,087, 2.88%, due 04/30/25)		2.52%		07/01/19	3,000,630	3,000,000
RBC DOMINION SECURITIES INC
Issued 05/22/19, repurchase date 07/12/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $3,070,424, 0.13% - 4.00%, due 01/15/21 - 08/01/44)		2.40%		07/05/19	3,008,800	3,000,000
Issued 05/23/19, repurchase date 07/23/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $3,072,460, 1.13% - 4.00%, due 01/15/21 - 08/01/44)		2.40%		07/05/19	3,008,600	3,000,000

₅₂

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Investor Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
ROYAL BANK OF CANADA
Issued 06/06/19, repurchase date 08/01/19 (Collateralized by U.S. Government Agency Securities valued at $5,169,227, 2.52% - 6.50%, due 07/15/28 - 04/01/49)		2.40%		07/05/19	5,009,667	5,000,000
Issued 06/13/19, repurchase date 07/15/19 (Collateralized by U.S. Government Agency Securities valued at $11,354,171, 3.00% - 4.50%, due 11/01/32 - 04/01/49)		2.40%		07/05/19	11,016,133	11,000,000
						92,000,000
U.S. Treasury Repurchase Agreement 0.3%
BARCLAYS BANK PLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $1,786,709, 3.75%, due 11/15/43)		2.40%		07/01/19	1,751,569	1,751,219
Other Repurchase Agreements** 3.9%
BNP PARIBAS SA
Issued 06/27/19, repurchase date 07/03/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $5,752,397, 2.70% - 6.05%, due 02/15/24 - 10/25/69)		2.50%		07/03/19	5,002,083	5,000,000
Issued 06/27/19, repurchase date 07/03/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $2,301,033, 7.00%, due 12/15/21)		2.52%		07/03/19	2,000,840	2,000,000
Issued 06/05/19, repurchase date 09/03/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $694,733, 7.00%, due 12/15/21)		2.68%		08/02/19	602,591	600,000
BOFA SECURITIES INC
Issued 06/13/19, repurchase date 09/12/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $5,750,001, 3.00%, due 10/25/58)		2.74%		08/02/19	5,019,028	5,000,000
JP MORGAN SECURITIES LLC
Issued 03/27/19, repurchase date 09/23/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $2,317,825, 2.57% - 10.45%, due 10/21/30 - 12/25/57)		3.00%		09/23/19	2,030,000	2,000,000
Issued 05/30/19, repurchase date 11/26/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $4,610,635, 2.72% - 5.39%, due 05/15/34 - 07/25/56)		2.87%		09/26/19	4,037,948	4,000,000
WELLS FARGO SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $1,050,216, 4.25%, due 09/12/28)		2.46%		07/01/19	1,000,205	1,000,000
Issued 06/24/19, repurchase date 07/01/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $1,050,515, 4.25%, due 09/12/28)		2.52%		07/01/19	1,000,490	1,000,000

₅₃

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Investor Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 04/22/19, repurchase date 07/22/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $1,159,099, 4.29% - 4.59%, due 02/15/36 - 01/19/38)		3.13%		07/22/19	1,007,912	1,000,000
Issued 04/22/19, repurchase date 10/21/19 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $2,335,232, 2.21% - 3.36%, due 11/20/21 - 08/05/36)		3.03%		10/01/19	2,027,270	2,000,000
						23,600,000
Total Repurchase Agreements
(Cost $117,351,219)						117,351,219

a	Credit-enhanced or liquidity-enhanced.
b	Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $148,671,642 or 24.7% of net assets.
c	VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly as well. The Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics.
*	Collateralized via U.S. Government Agency Securities or less frequently by higher rated U.S. Treasury Securities.
**	Collateralized via common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations or less frequently by higher rated U.S. Government Agency Securities and/ or U.S. Treasury Securities.

ABS —	Asset-backed securities
CNTY —	County
ETF —	Exchange-traded fund
HFA —	Housing finance agency/authority
LIBOR —	London Interbank Offered Rate is the interest rate banks charge each other for short-term loans.
LOC —	Letter of credit
RB —	Revenue bond
SIFMA —	Securities Industry and Financial Markets Association
SOFR —	Secured Overnight Financing Rate is published daily by the Federal Reserve Bank of New York and is based on the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
VRDN —	Variable rate demand note

₅₄

Schwab Prime Money Funds | Semiannual Report

See financial notes

Schwab Prime Money Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

Each of the funds in this report is a series of The Charles Schwab Family of Funds (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:

THE CHARLES SCHWAB FAMILY OF FUNDS (ORGANIZED OCTOBER 20, 1989)
Schwab Government Money Fund	Schwab Variable Share Price Money Fund
Schwab U.S. Treasury Money Fund	Schwab Retirement Government Money Fund
Schwab Treasury Obligations Money Fund	Schwab Municipal Money Fund
Schwab Value Advantage Money Fund	Schwab AMT Tax-Free Money Fund
Schwab Retirement Advantage Money Fund	Schwab California Municipal Money Fund
Schwab Investor Money Fund	Schwab New York Municipal Money Fund

Schwab Value Advantage Money Fund offers two share classes: Investor Shares and Ultra Shares. Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund each offer one share class. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums.

Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.

Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).

(a) Security Valuation:

Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

Securities in the funds are valued at amortized cost (which approximates market value) as permitted in accordance with Rule 2a-7 of the 1940 Act. In the event that security valuations do not approximate market value, securities may be fair valued as determined in accordance with procedures adopted by the Board. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the valuation procedures.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

₅₈

Schwab Prime Money Funds | Semiannual Report

Schwab Prime Money Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The three levels of the fair value hierarchy are as follows:

• Level 1—quoted prices in active markets for identical securities—Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities.

• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. Securities held by stable NAV money funds operating under Rule 2a-7 of the 1940 Act are valued at amortized cost which approximates current market value and are considered to be valued using Level 2 inputs.

• Level 3—significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As disclosed in the Portfolio Holdings, as of June 30, 2019, all of the funds’ investments were classified as Level 2.

(b) Accounting Policies for certain Portfolio Investments (if held):

Repurchase Agreements: In a repurchase agreement, a fund buys a security from another party (the counterparty), usually a financial institution, with the agreement that it be sold back in the future. Repurchase agreements subject a fund to counterparty risk, meaning that the fund could lose money if the other party fails to perform under the terms of the agreement. The funds mitigate this risk by ensuring that the funds’ repurchase agreements are collateralized by cash and/or U.S. government securities, fixed income securities, equity securities or other types of securities. These risks are magnified to the extent that a repurchase agreement is secured by collateral other than cash and U.S. government securities, such as debt securities, equity securities and high yield securities that are rated below investment grade. All collateral is held by the funds’ custodian (or, with multi-party agreements, the agent’s bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed or limited and the value of the collateral may decline. Investments in repurchase agreements are also based on a review of the credit quality of the repurchase agreement counterparty.

As of June 30, 2019, the following funds had investments in repurchase agreements with a gross value as disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities:

Schwab Value Advantage Money Fund	$21,578,240,550
Schwab Retirement Advantage Money Fund	43,188,267
Schwab Investor Money Fund	117,351,219

The value of the related collateral disclosed in the Portfolio Holdings exceeded the value of the repurchase agreements at period end.

Delayed-Delivery Transactions: The funds may buy securities at a predetermined price or yield, with payment and delivery taking place after the customary settlement period for that type of security. The funds will assume the rights and risks of ownership at the time of purchase, including the risk of price and yield fluctuations. Typically, no interest will accrue to a fund until the security is delivered. The funds will earmark or segregate appropriate liquid assets to cover their delayed-delivery purchase obligations, if any.

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Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

(d) Investment Income:

Interest income is recorded as it accrues. If a fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. Certain securities may be callable (meaning that the issuer has the option to pay it off before its maturity date). The fund amortizes the premium and accretes the discount on each callable security to the security’s maturity date, except when the purchase price is higher than the call price at the security’s call date (in which case the premium is amortized to the call date).

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets.

For funds offering multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The funds declare distributions from net investment income, if any, every day they are open for business. These distributions, which are substantially equal to a fund’s net investment income for that day, are paid out to shareholders once a month. The funds make distributions from net realized capital gains, if any, once a year.

(g) Accounting Estimates:

The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.

(h) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.

(i) Indemnification:

Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.

(j) Recent Accounting Standards:

In March 2017, the FASB issued Accounting Standards Update “Premium Amortization on Purchased Callable Debt Securities” which amends the amortization period for a callable debt security held at a premium from the maturity date to the earliest call date. The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. At this time, management believes these changes will not have a material impact to the financial statements.

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Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of transfers between levels upon issuance of ASU 2018-13, and have delayed adoption of the additional disclosures until their effective date. At this time, management is currently evaluating the impact that the adoption of the additional disclosures will have on the funds’ financial statements.

3. Risk Factors:

Investment Risk. You could lose money by investing in the funds. Although each fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The funds may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the funds’ liquidity falls below required minimums because of market conditions or other factors. An investment in the funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The funds’ sponsors have no legal obligation to provide financial support to the funds, and you should not expect that the sponsors will provide financial support to the funds at any time.

Retail Money Market Fund Risk. Each fund is a “retail money market fund,” as such term is defined or interpreted under the rules governing money market funds. A “retail money market fund” is a money market fund that has policies and procedures reasonably designed to limit all beneficial owners of the fund to natural persons. A fund may involuntarily redeem any investor who is not a natural person. Each fund will provide advance notice of its intent to make any such involuntary redemption. Neither the fund nor the investment adviser will be responsible for any loss or tax liability in an investor’s account resulting from such involuntary redemption. As a “retail money market fund,” each fund is permitted to value its securities using the amortized cost method to seek to maintain a stable $1.00 share price. However, each fund may be subject to liquidity fees and/or redemption gates on fund redemptions if the fund’s liquidity falls below required minimums because of market conditions or other factors.

Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, a fund’s yield will change over time. During periods when interest rates are low, a fund’s yield (and total return) also will be low, or may even be negative, which may make it difficult for the fund to pay expenses out of fund assets or maintain a stable $1.00 share price. A change in a central bank’s monetary policy or improving economic conditions may result in an increase in interest rates. The funds are currently subject to heightened levels of interest rate risk because of the continued economic recovery, along with the fact that the Federal Reserve Board ended its quantitative easing program in 2014, and has begun, and may continue, to raise interest rates. A sudden or unpredictable rise in interest rates may cause volatility in the market and may decrease liquidity in the money market securities markets, making it more difficult for a fund to sell its money market investments at a time when the investment adviser might wish to sell such investments. Decreased market liquidity also may make it more difficult to value some or all of a fund’s money market securities holdings.

Stable Net Asset Value Risk. If a fund or another money market fund fails to maintain a stable net asset value (or such perception exists in the market place), the fund could experience increased redemptions, which may adversely impact the fund’s share price. Each fund is permitted, among other things, to reduce or withhold any income and/or gains generated from its portfolio to maintain a stable $1.00 share price.

Repurchase Agreements Risk. When a fund enters into a repurchase agreement, the fund is exposed to the risk that the other party (i.e., the counterparty) will not fulfill its contractual obligation. In a repurchase agreement, there exists the risk that, when a fund buys a security from a counterparty that agrees to repurchase the security at an agreed upon price (usually higher) and time, the counterparty will not repurchase the security. These risks are magnified to the extent that a repurchase agreement is secured by collateral other than cash and government securities, such as debt securities, equity securities and high-yield securities that are rated below investment grade (also referred to as junk bonds) (Alternative Collateral). High-yield securities that are used as Alternative Collateral are subject to greater levels of credit and liquidity risk, and are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments. Alternative Collateral may be subject to greater price volatility and may be more volatile or less liquid than other types of collateral, increasing the risk that a fund will be unable to recover fully in the event of a counterparty’s default.

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Financial Notes, unaudited (continued)

3. Risk Factors (continued):

the ability of an issuer, guarantor, liquidity provider or counterparty to make payments or otherwise honor its obligations, as applicable, could also cause the price of that investment to decline. The credit quality of a fund’s portfolio holdings can change rapidly in certain market environments and any downgrade or default on the part of a single portfolio investment could cause the fund’s share price or yield to fall.

Many of the U.S. government securities that the funds invest in are not backed by the full faith and credit of the U.S. government, which means they are neither issued nor guaranteed by the U.S. Treasury. Although maintained in conservatorship by the Federal Housing Finance Agency since September 2008, the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) maintain only lines of credit with the U.S. Treasury. The Federal Home Loan Banks maintain limited access to credit lines from the U.S. Treasury. Other securities, such as obligations issued by the Federal Farm Credit Banks Funding Corporation, are supported solely by the credit of the issuer. There can be no assurance that the U.S. government will provide financial support to securities of its agencies and instrumentalities if it is not obligated to do so under law. Also, any government guarantees on securities a fund owns do not extend to the shares of the fund itself.

Credit and Liquidity Enhancements Risk. The funds may invest in securities with credit or liquidity enhancements provided by a bank or other financial institution, and the existence and nature of such enhancements may be a significant factor in the investment adviser’s decision-making process. Generally, these enhancements are employed by the issuers of the securities to reduce credit risk and provide enhanced or back-up liquidity for the purchaser, such as the funds. Adverse developments affecting these banks and financial institutions could therefore have a negative effect on the value of a fund’s holdings. For example, a rating agency downgrade of a credit or liquidity enhancement provider may adversely affect the value of securities held by the funds. Any decline in the value of the securities held by a fund could cause the fund’s share price or yield to fall. To the extent that a portion of a fund’s underlying investments are enhanced by the same bank or financial institution, these risks may be increased.

Management Risk. Any actively managed mutual fund is subject to the risk that its investment adviser will select investments or allocate assets in a manner that could cause a fund to underperform or otherwise not meet its investment objective. A fund’s investment adviser applies its own investment techniques and risk analyses in making investment decisions for the fund, but there can be no guarantee that they will produce the desired results. The investment adviser’s maturity decisions will also affect a fund’s yield, and potentially could affect its share price. To the extent that the investment adviser anticipates interest rate trends imprecisely, a fund’s yield at times could lag the yields of other money market funds.

Foreign Investment Risk. Although the funds may invest only in U.S. dollar-denominated securities, a fund’s investments in securities of foreign issuers or securities with credit or liquidity enhancements provided by foreign entities may involve certain risks that are greater than those associated with investments in securities of U.S. issuers or securities with credit or liquidity enhancements provided by U.S. entities. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. In addition, sovereign risk, or the risk that a government may become unwilling or unable to meet its loan obligations or guarantees, could increase the credit risk of financial institutions connected to that particular country.

Liquidity Risk. Liquidity risk exists when particular investments are difficult to purchase, sell or value, especially during stressed market conditions. The market for certain investments may become illiquid due to specific adverse changes in the conditions of a particular issuer or under adverse market or economic conditions independent of the issuer. In addition, limited dealer inventories of certain securities could potentially lead to decreased liquidity. In such cases, a fund, due to limitations on investments in illiquid securities and the difficulty in readily purchasing and selling such securities at favorable times or prices, may decline in value, experience lower returns and/or be unable to achieve its desired level of exposure to a certain issuer or sector. Further, transactions in illiquid securities may entail transaction costs that are higher than those for transactions in liquid securities.

Redemption Risk. A fund may experience periods of heavy redemptions that could cause the fund to liquidate its assets at inopportune times or at a loss or depressed value, particularly during periods of declining or illiquid markets. Redemptions by a few large investors in a fund may have a significant adverse effect on the fund’s ability to maintain a stable $1.00 share price. In the event any money market fund fails to maintain a stable net asset value, other money market funds, including the funds, could face a market-wide risk of increased redemption pressures, potentially jeopardizing the stability of their $1.00 share prices.

Money Market Fund Risk. The funds are not designed to offer capital appreciation. In exchange for their emphasis on stability and liquidity, money market investments may offer lower long-term performance than stock or bond investments.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

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Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions:

Investment Adviser

Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between it and the trust.

For its advisory and administrative services to the funds, CSIM is entitled to receive a graduated annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:

Average Daily Net Assets
First $1 billion	0.35%
More than $1 billion but not exceeding $10 billion	0.32%
More than $10 billion but not exceeding $20 billion	0.30%
More than $20 billion but not exceeding $40 billion	0.27%
Over $40 billion	0.25%

For the period ended June 30, 2019, the aggregate advisory fees paid to CSIM by the funds, as a percentage of each fund’s average daily net assets were as follows:

Schwab Value Advantage Money Fund	0.27%
Schwab Retirement Advantage Money Fund	0.35%
Schwab Investor Money Fund	0.35%

Shareholder Servicing

Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to the amount set forth in the table below. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the funds (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the funds), and the funds will pay no more than the amounts listed in the table below, calculated based on the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service providers. Payments under the Plan are made as described above without regard to whether the fee is more or less than the service provider’s actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.

	Shareholder Servicing Fee
Schwab Value Advantage Money Fund
Investor Shares	0.15%
Ultra Shares	n/a
Schwab Retirement Advantage Money Fund	0.15%
Schwab Investor Money Fund	0.15%

Contractual Expense Limitations

CSIM and its affiliates have made an additional agreement with each fund, for so long as CSIM serves as the investment adviser to the funds, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes, and certain non-routine expenses (expense limitation), as follows:

Schwab Value Advantage Money Fund
Investor Shares	0.35%
Ultra Shares	0.19%
Schwab Retirement Advantage Money Fund	0.35%
Schwab Investor Money Fund	0.35%

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Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Interfund Transactions

The funds may engage in transactions with certain other funds in the Fund Complex (for definition refer to Trustees and Officers section) when permitted by applicable law. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended June 30, 2019, each fund’s total aggregate security transactions with other funds in the Fund Complex as well as any realized gains (losses) were as follows:

	Total Aggregate Transactions	Realized Gains (Losses)
Schwab Value Advantage Money Fund	$166,468,606	$—
Schwab Retirement Advantage Money Fund	1,001,511	—
Schwab Investor Money Fund	2,002,923	—

Interfund Borrowing and Lending

Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex (for definition refer to Trustees and Officers section). All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.

5. Board of Trustees:

The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.

6. Borrowing from Banks:

During the period, the funds were participants with other U.S. registered investment companies managed by CSIM in a joint, syndicated, committed $750 million line of credit (the Syndicated Credit Facility), maturing on October 3, 2019. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by a fund, each fund paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the funds were participants with other U.S. registered investment companies managed by CSIM in a joint, unsecured, uncommitted $500 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on November 29, 2019. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings from either line of credit during the period.

The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed on each fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Federal Income Taxes:

As of June 30, 2019, the tax basis cost of the funds’ investments was as follows:

	Schwab Value Advantage Money Fund		Schwab Retirement Advantage Money Fund		Schwab Investor Money Fund
Tax cost	$99,257,610,624		$200,285,635		$601,392,728

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Financial Notes, unaudited (continued)

7. Federal Income Taxes (continued):

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of December 31, 2018, the funds had capital loss carryforwards available to offset future net capital gains as follows:

Expiration Date	Schwab Value Advantage Money Fund	Schwab Retirement Advantage Money Fund	Schwab Investor Money Fund
No expiration	$164,307	$555	$4,478
Total	$164,307	$555	$4,478

The tax-basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of June 30, 2019. The tax-basis components of distributions paid during the year ended December 31, 2018, were as follows:

	Schwab Value Advantage Money Fund	Schwab Retirement Advantage Money Fund	Schwab Investor Money Fund
Ordinary income	$922,141,124	$3,283,716	$9,709,063

As of December 31, 2018, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended December 31, 2018, the funds did not incur any interest or penalties.

8. Subsequent Events:

Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.

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Investment Advisory Agreement Approval

The Investment Company Act of 1940 (the 1940 Act) requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.

The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between The Charles Schwab Family of Funds (the Trust) and Charles Schwab Investment Management, Inc. (CSIM) with respect to the existing funds in the Trust, including the Schwab Value Advantage Money Fund, Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund (the Funds), and to review certain other agreements pursuant to which CSIM provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by CSIM, including information about CSIM’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. The Board also receives extensive data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. The Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees meet in executive session outside the presence of Fund management and participate in question and answer sessions with representatives of CSIM.

The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Funds at meetings held on May 13, 2019 and June 4, 2019, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting held on June 4, 2019. The Board’s approval of the continuance of the Agreement with respect to the Funds was based on consideration and

evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:

1.	the nature, extent and quality of the services provided to the Funds under the Agreement, including the resources of CSIM and its affiliates dedicated to the Funds;
2.	each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.	each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.	the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to CSIM and its affiliates; and
5.	the extent to which economies of scale would be realized as the Funds grow and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, CSIM’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by CSIM relating to services and support provided with respect to the Funds’ portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, fund accounting and custody, and vendor and risk oversight. The Trustees also considered investments CSIM has made in its infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise in key areas (including portfolio management and trade operations), and improving business continuity, cybersecurity, due diligence, risk management processes, and information security programs, which are designed to provide enhanced services to the Funds and their shareholders. The Trustees also considered that the vast majority of the Funds’ shareholders are also brokerage clients of Schwab and considered Schwab’s wide range of products, services, and channel alternatives such as investment research tools and an array of account features that benefit the Funds and certain of their shareholders. Finally, the Trustees also considered Schwab’s reputation as a full service brokerage firm and its overall financial condition. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM to the Funds and the

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resources of CSIM and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.

Fund Performance. The Board considered the Funds’ performance in determining whether to renew the Agreement with respect to the Funds. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of total return, yield, if applicable, and market trends, as well as in consideration of each Fund’s investment style and strategy attributes and disclosures. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of each Fund, the Trustees considered the risk profile for such Fund and each Fund’s operation as a money market fund within the meaning of Rule 2a-7 under the 1940 Act. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and adviser profitability discussed below and also noted that performance is reviewed throughout the year by a designated committee of the Board and by the Board. Following such evaluation the Board concluded, within the context of its full deliberations, that the performance of the Funds supported renewal of the Agreement with respect to the Funds.

Fund Expenses. With respect to the Funds’ expenses, the Trustees considered the rate of compensation called for by the Agreement, and each Fund’s net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. CSIM reported to the Board, and the Board took into account, the risk assumed by CSIM in the development of products and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of CSIM’s and Schwab’s practice of waiving management and other fees to prevent total Fund expenses from exceeding a specified cap as well as historically using voluntary waivers to maintain a certain yield, which CSIM has committed not to recoup. The Trustees also considered fees charged by CSIM to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services CSIM provides to these other accounts, as well as differences in the market for these types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Funds are reasonable and supported renewal of the Agreement with respect to the Funds.

reviewed management’s profitability analyses. The Trustees also reviewed profitability of CSIM relating to the Schwab fund complex as a whole, noting the benefit to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain fixed costs across other funds in the complex. The Trustees also considered any other benefits derived by CSIM from its relationship with the Funds, such as whether, by virtue of its management of the Funds, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the varied levels of compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to each Fund by CSIM and its affiliates. The Trustees noted that CSIM continues to invest substantial sums in its business in order to provide enhanced research capabilities, services, and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of CSIM is reasonable and supported renewal of the Agreement with respect to the Funds.

Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, the Trustees considered the potential existence of any economies of scale and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by CSIM in CSIM’s infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence, and information security programs, which are designed to provide enhanced services to the Funds and their shareholders; (ii) graduated investment advisory fee schedules, fee waivers, or expense caps by CSIM and its affiliates for those funds with such features; and (iii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that CSIM has shared any economies of scale with the Funds by investing in CSIM’s infrastructure, as discussed above, over time and that CSIM’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds continues to increase as a result of regulatory or other developments. The Trustees considered that CSIM and its affiliates may employ contractual expense caps to protect shareholders from high fees when fund assets are relatively small, for example, in the case of newer funds or funds with investment strategies that are from time to time out of favor, because, among other reasons, shareholders may benefit from the continued availability of such funds at subsidized expense levels. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Funds obtain reasonable benefits from economies of scale.

In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the

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Trustees and Officers

The tables below give information about the trustees and officers of The Charles Schwab Family of Funds, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 98 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds.	98	None
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Senior Fellow (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University.	98	Director (2005 – present), Gilead Sciences, Inc.
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services).	98	None
Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	CEO and Owner (May 2012 – present), Kochis Global (wealth management consulting).	98	None

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Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	98	Director (2003 – present), Symantec Corporation Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – present), Adamas Pharmaceuticals, Inc.
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Chief Investment Officer (2009-2017), CareGroup Healthcare System, Inc. (healthcare).	98	None
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses).	98	Director (2008 – present), KLA-Tencor Corporation
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Consultant (2008 – present), Patmore Management Consulting (management consulting).	98	None
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Chairman, Chief Executive Officer and Founder (Mar. 1990 – present), Smith Graham & Co. (investment advisors).	98	Director (2012 – present), Eaton

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Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010)	Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank; Director (Nov. 2017 – present), Charles Schwab Premier Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (July 2016 – present), Charles Schwab Investment Management, Inc.	98	Director (2008 – present), The Charles Schwab Corporation
Jonathan de St. Paer² 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Director and Chief Executive Officer (Apr. 2019 – present) and President (Oct. 2018 – present), Charles Schwab Investment Management, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.	98	None
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank; Director (Nov. 2017 – present), Charles Schwab Premier Bank; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.	98	None

Officers of the Trust
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Director and Chief Executive Officer (Apr. 2019 – present) and President (Oct. 2018 – present), Charles Schwab Investment Management, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.

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Officers of the Trust (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Mark Fischer 1970 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013)	Treasurer and Chief Financial Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management.
George Pereira 1964 Senior Vice President and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust since 2006; Schwab Strategic Trust since 2009)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present) and Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Operating Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Treasurer and Chief Financial Officer (June 2006 – Dec. 2015), Laudus Funds; Treasurer and Principal Financial Officer (Nov. 2004 – Dec. 2015), Schwab Funds; Treasurer and Principal Financial Officer (Oct. 2009 – Dec. 2015), Schwab ETFs; Director (Apr. 2005 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited.
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management.
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Fixed Income (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President (Sept. 2011 – present) and Vice President (Mar. 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present) and Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk (Apr. 2011 – present), Laudus Funds; Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009)	Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary (Oct. 2009 – present), Schwab ETFs.

¹	Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger, Mr. de St. Paer and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for the trusts in the Fund Complex, is an employee and director of Charles Schwab & Co., Inc. (CS&Co), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust, and is a director of CSIM. Mr. de St. Paer is an Interested Trustee because he owns stock of CSC and is an employee and director of CSIM. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of CS&Co.
³	The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

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Glossary

144A securities These securities may be sold only to qualified institutional buyers under Securities Act Rule 144A.

agency discount notes Notes issued by federal agencies—known as Government Sponsored Enterprises, or GSEs—at a discount to their value at maturity. An agency discount note is a short-term investment offering a high degree of credit quality.

asset-backed commercial paper A short-term investment that is typically issued by a bank or other financial institution. The notes represent an interest in financial assets such as trade receivables, credit card receivables, auto receivables, etc. and are generally used for the short-term financing needs of companies. Asset-backed commercial paper is subject to credit risk.

capital gain, capital loss The difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the gain or loss is still “on paper” and is considered unrealized.

collateralized mortgage obligation (CMO) A type of security that is collateralized by pools of mortgages backed by government agencies or private issuers (non-agency). The streams of principal and interest payments on the mortgages are distributed to the different classes of CMO interests, known as tranches. Each tranche may have different principal balances, coupon rates, prepayment risks, and maturity dates.

commercial paper Promissory notes issued by banks, corporations and other entities to finance short-term credit needs. These securities generally are structured on a discounted basis but sometimes may be interest-bearing notes. Commercial paper, which may be unsecured, is subject to credit risk.

corporate note An unsecured debt security issued by a corporation that is subject to the credit risk of the issuer.

credit-enhanced securities Securities that are backed by the credit of an entity other than the issuer (such as a financial institution). Credit enhancements, which can equal up to 100% of the security’s value, are designed to help lower the risk of default on a security and may also make the security more liquid.

credit quality The capacity of an issuer to make its interest and principal payments. Federal regulations strictly regulate the credit quality of the securities a money market fund can buy.

credit ratings Debt issuers, including corporations, states and municipalities, may arrange with a recognized independent rating organization, such as Standard & Poor’s, Fitch, Inc., Moody’s Investor Service, and DBRS, to rate their creditworthiness and/or the creditworthiness of their debt issues. For example, an issuer may obtain a long-term rating within the investment grade rating category, which is, from high to low, AAA, AA, A and BBB for Standard & Poor’s, Fitch, and DBRS; and Aaa, Aa, A and Baa for Moody’s.

credit risk The risk that a debt issuer may be unable to pay interest or repay principal to its debt holders.

dollar-weighted average maturity See weighted average maturity.

effective yield A measurement of a fund’s yield that assumes that all interest income is reinvested in additional shares of the fund.

exchange-traded fund (ETF) An investment fund that tracks an index, a commodity or a basket of assets, and trades on an exchange.

expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.

face value The value of a bond, note, mortgage or other security as given on the certificate or instrument. Face value is also referred to as par value or nominal value.

illiquid securities Securities are generally considered illiquid if they cannot be disposed of promptly (typically within seven days) and in the ordinary course of business at approximately the amount at which a fund has valued the instruments.

interest Payments to holders of debt securities as compensation for loaning a security’s principal to the issuer.

liquidity-enhanced security The security’s structure includes a liquidity arrangement that requires an entity other than the issuer (such as a large financial institution) to provide funds to pay a tender under most circumstances. Liquidity enhancements are often used on variable-rate securities where the portfolio manager has an option to tender the securities for repayment within a specified time period (usually one day or one week) at any time prior to their final maturity.

maturity The date a debt security is scheduled to be “retired” and its principal amount repaid. The Maturity of an investment will generally reflect the security’s final maturity date unless the security’s structure includes a maturity-shortening provision such as an interest rate reset, demand feature or put feature (the “Effective Maturity Date”). For those securities with a maturity-shortening provision, including variable-rate demand securities, the Maturity is determined by using the Effective Maturity Date, as permitted by Rule 2a-7.

municipal securities Debt securities issued by a state, its counties, municipalities, authorities and other subdivisions, or the territories and possessions of the United States and the District of Columbia, including their subdivisions, agencies and instrumentalities and corporations. These securities may be issued to obtain money for various public purposes, including the construction of a wide range of public facilities such as airports, bridges, highways, housing, hospitals, mass transportation, public utilities, schools, streets, and water and sewer works.

net asset value per share (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding. Certain money funds seek to maintain a steady NAV of $1.00.

outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.

repurchase agreement (also known as a “repo”) The sale of a security combined with a simultaneous agreement to repurchase it at a predetermined date and price.

restricted securities Securities that are subject to contractual restrictions on resale. These securities are often purchased in private placement transactions.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

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Charles Schwab Investment Management

With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Charles Schwab Investment Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds.

Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.

The Schwab Funds Family^®

Equity Funds

Schwab Core Equity Fund

Schwab Dividend Equity Fund

Schwab Large-Cap Growth Fund

Schwab Small-Cap Equity Fund

Schwab Hedged Equity Fund

Schwab Health Care Fund

Schwab International Core Equity Fund

Schwab Fundamental US Large Company Index Fund

Schwab Fundamental US Small Company Index Fund

Schwab Fundamental International Large Company Index Fund

Schwab Fundamental International Small Company Index Fund

Schwab Fundamental Emerging Markets Large Company Index Fund

Schwab Fundamental Global Real Estate Index Fund

Schwab Global Real Estate Fund

Schwab S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab U.S. Large-Cap Growth Index Fund

Schwab U.S. Large-Cap Value Index Fund

Schwab U.S. Mid-Cap Index Fund

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund

Schwab MarketTrack Portfolios^®

Schwab Target Funds

Schwab Target Index Funds

Schwab Monthly Income Funds

Bond Funds

Schwab Treasury Inflation Protected Securities Index Fund

Schwab U.S. Aggregate Bond Index Fund

Schwab Short-Term Bond Index Fund

Schwab Tax-Free Bond Fund¹

Schwab California Tax-Free Bond Fund¹

Schwab Money Funds²

Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Funds

Schwab Funds^®

1-877-824-5615

State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.

You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.

Semiannual Report | June 30, 2019

Schwab Government Money Funds

Schwab Government
Money Fund

Schwab U.S. Treasury
Money Fund

Schwab Treasury Obligations
Money Fund

New Notice Regarding Shareholder Report Delivery Options

If you would like to receive a fund’s future shareholder reports in paper free of charge after January 1, 2021, you can make that request:

• If you invest through Charles Schwab & Co, Inc. (broker-dealer), by calling 1-866-345-5954 and using the unique identifier attached to this mailing;

• If you invest through another financial intermediary (such as a bank or broker-dealer) by contacting them directly; or

• If owned directly through a fund by calling 1-800-407-0256.

If you already receive shareholder reports and other fund documents electronically, you will not be affected by this change and you need not take any action.

Schwab Government Money Funds

From the President

Jonathan de St. Paer
President and CEO of
Charles Schwab Investment
Management, Inc. and the
funds covered in this report.

Dear Shareholder,

At Charles Schwab Investment Management, we’re committed to providing a straightforward lineup of core investment products and solutions that can help investors pursue a strategy that’s right for their needs. Designed to offer stability of capital, liquidity, and current income, the Schwab Government Money Funds are a prime example of this approach. The funds are actively managed, benefitting from extensive credit research and analysis that aims to reduce portfolio, credit, and interest rate risks. Our team also evaluates stress tests designed to help them understand various scenarios, including the impact of factors such as decreases or increases in short-term rates, widening of credit spreads, and downgrades or defaults among issuers. And, with no investment minimums on the funds’ Investor Shares, the Schwab Government Money Funds can help investors realize the benefits of professional money management without the typical barriers to entry.

Thank you for investing with Charles Schwab Investment Management, and for trusting us to help you achieve your financial goals. For more information about the Schwab Government Money Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our website at www.schwabfunds.com. We are also happy to hear from you at 1-877-824-5615.

Sincerely,

“ And, with no investment minimums on the funds’ Investor Shares, the Schwab Government Money Funds can help investors realize the benefits of professional money management without the typical barriers to entry.”

Management views may have changed since the report date.

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Schwab Government Money Funds

Fund Management

Lynn Paschen, Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2011, Ms. Paschen held a number of positions at American Century Investments. She most recently was a portfolio manager and, from 2000 to 2003, worked as a fixed income trader. She has managed money market funds since 2003.

Nicole Perret-Gentil, Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2016, Ms. Perret-Gentil worked at Freddie Mac for 15 years, most recently as a senior portfolio manager where she managed and executed trades for a fixed income strategy. Prior to that role, she served as a portfolio manager performing fixed income analysis, a senior research analyst for investor and dealer relations, a senior securities operations analyst in loan and securities operations, and a lead mortgage securities operations specialist. She also worked at Merrill Lynch for a year as a senior specialist in fixed income global banking and investments.

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Schwab Government Money Funds | Semiannual Report

Schwab Government Money Fund

The Schwab Government Money Fund (the fund) seeks the highest current income consistent with stability of capital and liquidity. To pursue its goal, the fund invests in U.S. government securities such as U.S. Treasury bills and notes, other obligations that are issued by the U.S. government, its agencies, or instrumentalities, repurchase agreements that are collateralized fully by cash and/or U.S. government securities, and obligations that are issued by private issuers that are guaranteed as to principal or interest by the U.S. government, its agencies, or instrumentalities. The fund will invest at least 99.5% of its total assets in cash, U.S. government securities and/or repurchase agreements that are collateralized fully by cash and/or U.S. government securities; under normal circumstances, investing at least 80% of the fund’s net assets (including, for this purpose, any borrowings for investment purposes) solely in U.S. government securities including repurchase agreements that are collateralized fully by U.S. government securities (excluding cash). For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on liquidity and stability of capital as market conditions evolved. In response to the Fed holding short-term interest rates steady and the possibility of rate cuts later in 2019, as well as the completion of anticipated client redemptions, the fund’s weighted average maturity (WAM) began the reporting period at 8 days and ended at 39 days.

*	Data source for yields: U.S. Department of the Treasury

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

39 Days

Management views and portfolio holdings may have changed since the report date.

¹	Maturity shown is the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Government Money Funds | Semiannual Report

Schwab Government Money Fund

Performance and Fund Facts as of June 30, 2019

Seven-Day Average Yield Trend for Previous 12 Months

Seven-Day Yields

	Schwab Government Money Fund
	Sweep Shares	Investor Shares
Ticker Symbol	SWGXX	SNVXX
Minimum Initial Investment¹	^*	None
Seven-Day Yield (with waivers)²	1.82%	2.09%
Seven-Day Yield (without waivers)²	1.82%	1.97%
Seven-Day Effective Yield (with waivers)²	1.84%	2.11%

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

^*	Subject to the eligibility terms and conditions of your Schwab account agreement.
¹	Please see prospectus for further detail and eligibility requirements.
²	The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab Government Money Funds | Semiannual Report

Schwab U.S. Treasury Money Fund

The Schwab U.S. Treasury Money Fund (the fund) seeks the highest current income that is consistent with stability of capital and liquidity. To pursue its goal, the fund typically invests in securities backed by the full faith and credit of the U.S. government. The fund will invest at least 99.5% of its total assets in cash and/or government securities; under normal circumstances investing at least 80% of the fund’s net assets (including, for this purpose, any borrowings for investment purposes) solely in U.S. Treasury securities (excluding cash). For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on liquidity and stability of capital as market conditions evolved. In response to the Fed holding short-term interest rates steady and the possibility of rate cuts later in 2019, as well as the completion of anticipated client redemptions, the fund’s weighted average maturity (WAM) began the reporting period at 8 days and ended at 42 days.

*	Data source for yields: U.S. Department of the Treasury

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments^3,4

Statistics

Weighted Average Maturity²

42 Days

Management views and portfolio holdings may have changed since the report date.

¹	Maturity shown is the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The Fund may elect to invest up to 20% of its net assets in (i) obligations that are issued by the U.S. government, its agencies or instrumentalities, including obligations that are not guaranteed by the U.S. Treasury and (ii) obligations that are issued by private issuers that are guaranteed as to principal or interest by the U.S. government, its agencies or instrumentalities. Please refer to the fund prospectus for further details on investment objectives, risks, charges, tax implications and expenses.
⁴	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Government Money Funds | Semiannual Report

Schwab U.S. Treasury Money Fund

Performance and Fund Facts as of June 30, 2019

Seven-Day Average Yield Trend for Previous 12 Months

Seven-Day Yields

	Schwab U.S. Treasury Money Fund
	Investor Shares
Ticker Symbol	SNSXX
Minimum Initial Investment¹	None
Seven-Day Yield (with waivers)²	1.94%
Seven-Day Yield (without waivers)²	1.80%
Seven-Day Effective Yield (with waivers)²	1.96%

Please see prospectus for further detail and eligibility requirements.

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Schwab Government Money Funds | Semiannual Report

Schwab Treasury Obligations Money Fund

The Schwab Treasury Obligations Money Fund (the fund) seeks current income consistent with stability of capital and liquidity. To pursue its goal, the fund typically invests in securities backed by the full faith and credit of the U.S. government and repurchase agreements backed by such investments. The fund will invest at least 99.5% of its total assets in cash, government securities and/or repurchase agreements that are collateralized fully by cash and/or government securities; under normal circumstances investing at least 80% of the fund’s net assets (including, for this purpose, any borrowings for investment purposes) solely in U.S. Treasury obligations or repurchase agreements backed by such obligations (excluding cash). For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on liquidity and stability of capital as market conditions evolved. In response to the Fed holding short-term interest rates steady and the possibility of rate cuts later in 2019, as well as the completion of anticipated client redemptions, the fund’s weighted average maturity (WAM) began the reporting period at 10 days and ended at 30 days.

*	Data source for yields: U.S. Department of the Treasury

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

30 Days

Management views and portfolio holdings may have changed since the report date.

¹	Maturity shown is the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Government Money Funds | Semiannual Report

Schwab Treasury Obligations Money Fund

Performance and Fund Facts as of June 30, 2019

Seven-Day Average Yield Trend for Previous 12 Months

Seven-Day Yields

	Schwab Treasury Obligations Money Fund
	Investor Shares
Ticker Symbol	SNOXX
Minimum Initial Investment¹	None
Seven-Day Yield (with waivers)²	2.07%
Seven-Day Yield (without waivers)²	1.94%
Seven-Day Effective Yield (with waivers)²	2.09%

Please see prospectus for further detail and eligibility requirements.

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Schwab Government Money Funds | Semiannual Report

Schwab Government Money Funds

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s or share class’ actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

	Expense Ratio (Annualized)¹	Beginning Account Value at 1/1/19	Ending Account Value (Net of Expenses) at 6/30/19	Expenses Paid During Period 1/1/19-6/30/19²
Schwab Government Money Fund
Sweep Shares
Actual Return	0.62%	$1,000.00	$1,009.10	$3.09
Hypothetical 5% Return	0.62%	$1,000.00	$1,021.73	$3.11
Investor Shares
Actual Return	0.35%	$1,000.00	$1,010.50	$1.74
Hypothetical 5% Return	0.35%	$1,000.00	$1,023.06	$1.76
Schwab U.S. Treasury Money Fund
Investor Shares
Actual Return	0.35%	$1,000.00	$1,010.10	$1.74
Hypothetical 5% Return	0.35%	$1,000.00	$1,023.06	$1.76
Schwab Treasury Obligations Money Fund
Investor Shares
Actual Return	0.35%	$1,000.00	$1,010.40	$1.74
Hypothetical 5% Return	0.35%	$1,000.00	$1,023.06	$1.76

¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
²	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days of the period, and divided by 365 days of the fiscal year.

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Schwab Government Money Funds | Semiannual Report

Schwab Government Money Fund

Financial Statements

Financial Highlights

Sweep Shares	1/1/19– 6/30/19*	1/1/18– 12/31/18	1/1/17– 12/31/17	1/1/16– 12/31/16	1/1/15– 12/31/15	1/1/14– 12/31/14
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.01 ¹	0.01 ¹	0.00 ¹^,²	0.00 ¹^,²	– ¹	(0.00) ²
Net realized and unrealized gains (losses)	—	0.00 ²	0.00 ²	0.00 ²	(0.00) ²	(0.00) ²
Total from investment operations	0.01	0.01	0.00 ²	0.00 ²	(0.00) ²	(0.00) ²
Less distributions:
Distributions from net investment income	(0.01)	(0.01)	(0.00) ²	(0.00) ²	—	—
Distributions from net realized gains	—	(0.00) ²	(0.00) ²	—	—	—
Total distributions	(0.01)	(0.01)	(0.00) ²	(0.00) ²	—	—
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.91% ³	1.23%	0.26%	0.01%	—	—
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.62% ⁴	0.62%	0.63% ⁵^,⁶	0.39% ⁵	0.14% ⁵	0.09% ⁵
Gross operating expenses	0.62% ⁴	0.62%	0.68%	0.71%	0.72%	0.72%
Net investment income (loss)	1.83% ⁴	1.12%	0.25%	0.01%	0.00%	0.00%
Net assets, end of period (x 1,000,000)	$11,362	$11,325	$25,324	$32,377	$23,017	$25,170

Investor Shares	1/1/19– 6/30/19*	1/1/18– 12/31/18	1/1/17– 12/31/17⁷	1/1/16– 12/31/16	1/21/15 ⁸– 12/31/15
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)¹	0.01	0.02	0.00 ²	0.00 ²	—
Net realized and unrealized gains (losses)	—	0.00 ²	0.00 ²	0.00 ²	(0.00) ²
Total from investment operations	0.01	0.02	0.00 ²	0.00 ²	(0.00) ²
Less distributions:
Distributions from net investment income	(0.01)	(0.02)	(0.00) ²	(0.00) ²	—
Distributions from net realized gains	—	(0.00) ²	(0.00) ²	—	—
Total distributions	(0.01)	(0.02)	(0.00) ²	(0.00) ²	—
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	1.05% ³	1.51%	0.50%	0.05%	– ³
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.35% ⁴	0.35%	0.40% ⁵^,⁶	0.33%	0.20% ⁴
Gross operating expenses	0.47% ⁴	0.48%	0.53%	0.55%	0.57% ⁴
Net investment income (loss)	2.10% ⁴	1.66%	0.51%	0.09%	0.00% ⁴
Net assets, end of period (x 1,000,000)	$10,833	$7,871	$1,362	$939	$100

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Not annualized.

⁴

Annualized.

⁵

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation.

⁶

Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

⁷

Effective October 3, 2017, the share class name of Purchased Shares was changed to Investor Shares.

⁸

Commencement of operations.

₁₁

Schwab Government Money Funds | Semiannual Report

See financial notes

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 37.0% of net assets
U.S. Government Agency Debt 31.8%
FEDERAL FARM CREDIT BANKS FUNDING CORP		2.46%		08/12/19	100,000	99,715
		2.45%		09/10/19	1,000,000	995,227
		2.15%		12/02/19	20,000,000	19,817,767
		2.15%		12/06/19	45,700,000	45,272,781
FEDERAL HOME LOAN BANKS		2.41%		07/05/19	213,500,000	213,443,233
		2.41%		07/09/19	86,100,000	86,054,271
		2.39%		07/10/19	250,000,000	249,851,375
		2.40%		07/10/19	261,000,000	260,844,052
		2.35%		07/17/19	300,000	299,687
		2.41%		07/17/19	642,000,000	641,317,140
		2.43%		07/17/19	75,000,000	74,919,533
		2.42%		07/18/19	213,000,000	212,757,594
		2.35%		07/19/19	200,000	199,765
		2.42%		07/26/19	600,000,000	598,996,667
		2.41%		07/30/19	213,500,000	213,088,953
		2.39%		08/14/19	212,600,000	211,982,090
		2.39%		08/16/19	425,200,000	423,911,266
		2.38%		08/19/19	42,000,000	41,864,801
		2.42%		08/19/19	475,000,000	474,964,209
		2.38%		08/21/19	258,250,000	257,384,023
		2.36%		08/23/19	438,500,000	436,984,203
		2.43%		08/29/19	42,000,000	41,833,767
		2.48%		09/11/19	4,500,000	4,477,932
		2.45%		09/16/19	214,000,000	213,991,969
		2.45%		09/23/19	80,000,000	79,994,877
		2.18%		09/25/19	386,000,000	384,004,552
		2.46%		09/25/19	517,000,000	513,998,815
		2.17%		09/27/19	170,000,000	169,102,400
		2.16%		10/01/19	170,000,000	169,065,944
		2.17%		11/06/19	3,200,000	3,175,538
		2.17%		11/13/19	2,875,000	2,851,820
		2.42%		11/15/19	2,008,000	1,989,737

₁₂

Schwab Government Money Funds | Semiannual Report

See financial notes

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
		2.16%		12/05/19	30,000,000	29,720,017
		2.14%		12/12/19	80,500,000	79,722,549
		2.58%		03/20/20	85,500,000	85,500,000
		2.51%		04/02/20	86,000,000	86,000,000
		2.55%		04/03/20	85,250,000	85,250,000
		1.94%		05/01/20	1,000,000	983,818
		2.51%		05/28/20	106,250,000	106,250,000
		2.04%		06/18/20	18,900,000	18,530,277
FEDERAL HOME LOAN MORTGAGE CORPORATION		1.38%		08/15/19	6,250,000	6,242,343
		1.25%		10/02/19	24,000,000	23,933,769
		2.16%		11/19/19	71,990,000	71,386,036
		2.52%		04/15/20	63,500,000	63,500,000
		1.65%		04/27/20	3,000,000	2,988,399
		2.20%		04/27/20	3,000,000	3,001,774
		2.50%		06/04/20	106,500,000	106,500,000
		2.44%		06/09/20	85,200,000	85,200,000
		2.40%		06/12/20	94,500,000	94,500,000
FEDERAL NATIONAL MORTGAGE ASSOCIATION		0.88%		08/02/19	65,534,000	65,443,722
						7,064,188,407
U.S. Treasury Debt 5.2%
UNITED STATES TREASURY		1.88%		12/31/19	200,000,000	199,710,583
		1.63%		12/31/19	75,900,000	75,738,108
		1.13%		12/31/19	70,000,000	69,553,058
		1.38%		01/15/20	528,000,000	525,929,201
		1.25%		01/31/20	270,000,000	268,680,631
						1,139,611,581
Total Fixed-Rate Obligations
(Cost $8,203,799,988)						8,203,799,988

Variable-Rate Obligations 18.8% of net assets
U.S. Government Agency Debt 18.8%
FEDERAL FARM CREDIT BANKS FUNDING CORP
(SOFR + 0.02%)		2.40%	07/01/19	10/28/19	13,000,000	12,998,453
(3 mo. USD-LIBOR - 0.14%)		2.30%	09/12/19	03/12/20	4,000,000	3,999,861
(1 mo. USD-LIBOR - 0.01%)		2.38%	07/18/19	06/18/20	127,800,000	127,800,000
(1 mo. USD-LIBOR + 0.01%)		2.44%	07/01/19	06/29/20	145,000,000	145,000,000
(1 mo. USD-LIBOR + 0.01%)		2.41%	08/02/19	07/02/20	92,000,000	92,000,000
(1 mo. USD-LIBOR - 0.03%)		2.36%	07/16/19	07/16/20	59,000,000	58,983,436
(1 mo. USD-LIBOR - 0.02%)		2.41%	07/05/19	08/05/20	47,250,000	47,248,328
(1 mo. USD-LIBOR - 0.02%)		2.43%	07/01/19	09/01/20	202,250,000	202,232,436
(1 mo. USD-LIBOR - 0.05%)		2.37%	07/09/19	10/09/20	200,000,000	199,861,691
(1 mo. USD-LIBOR - 0.01%)		2.42%	07/01/19	10/30/20	139,100,000	139,086,382
FEDERAL HOME LOAN BANKS
(SOFR + 0.01%)		2.43%	07/01/19	08/30/19	229,250,000	229,250,000
(1 mo. USD-LIBOR - 0.04%)		2.38%	07/08/19	09/06/19	185,000,000	185,000,000
(SOFR + 0.06%)		2.48%	07/01/19	09/10/19	50,000,000	50,000,000

₁₃

Schwab Government Money Funds | Semiannual Report

See financial notes

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
(SOFR + 0.03%)		2.45%	07/01/19	09/20/19	100,000,000	100,000,000
(SOFR + 0.03%)		2.45%	07/01/19	10/09/19	130,500,000	130,500,000
(3 mo. USD-LIBOR - 0.12%)		2.44%	08/12/19	11/12/19	246,750,000	246,750,000
(SOFR + 0.03%)		2.45%	07/01/19	12/06/19	112,900,000	112,900,000
(SOFR + 0.01%)		2.44%	07/01/19	02/21/20	76,000,000	76,000,000
(SOFR + 0.07%)		2.49%	07/01/19	03/27/20	215,000,000	215,000,000
(3 mo. USD-LIBOR - 0.14%)		2.47%	07/13/19	04/13/20	106,500,000	106,500,000
(3 mo. USD-LIBOR - 0.18%)		2.39%	08/08/19	05/08/20	20,000,000	19,995,756
(SOFR + 0.04%)		2.46%	07/01/19	05/08/20	125,000,000	125,000,000
(1 mo. USD-LIBOR - 0.02%)		2.37%	07/20/19	05/20/20	106,250,000	106,250,000
(1 mo. USD-LIBOR - 0.02%)		2.43%	07/03/19	06/03/20	128,500,000	128,500,000
(1 mo. USD-LIBOR - 0.02%)		2.42%	07/01/19	07/01/20	137,250,000	137,250,000
(SOFR + 0.04%)		2.46%	07/01/19	08/25/20	48,000,000	48,000,000
(SOFR + 0.05%)		2.47%	07/01/19	09/28/20	69,800,000	69,800,000
(SOFR + 0.11%)		2.54%	07/01/19	10/01/20	27,500,000	27,500,000
(1 mo. USD-LIBOR + 0.00%)		2.40%	07/26/19	10/26/20	331,450,000	331,458,647
(1 mo. USD-LIBOR - 0.01%)		2.40%	07/26/19	10/26/20	114,750,000	114,750,000
(SOFR + 0.11%)		2.53%	07/01/19	01/15/21	55,100,000	55,100,000
(SOFR + 0.12%)		2.54%	07/01/19	03/12/21	97,800,000	97,802,408
(SOFR + 0.10%)		2.52%	07/01/19	05/07/21	27,500,000	27,500,000
(SOFR + 0.08%)		2.50%	07/01/19	06/11/21	88,000,000	88,000,000
FEDERAL HOME LOAN MORTGAGE CORPORATION
(3 mo. USD-LIBOR - 0.17%)		2.43%		07/05/19	21,555,000	21,555,128
(SOFR + 0.03%)		2.45%	07/01/19	10/01/19	185,000,000	185,000,000
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(SOFR + 0.08%)		2.50%	07/01/19	10/30/20	116,000,000	116,007,023
Total Variable-Rate Obligations
(Cost $4,180,579,549)						4,180,579,549
Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 45.1% of net assets
U.S. Government Agency Repurchase Agreements* 26.4%
BANK OF NOVA SCOTIA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $843,077,350, 2.33% - 7.00%, due 11/01/20 - 06/20/49)		2.47%		07/01/19	818,521,699	818,353,255
BARCLAYS BANK PLC
Issued 06/24/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $1,030,879,197, 2.50% - 12.18%, due 04/20/26 - 04/20/49)		2.51%		07/01/19	1,000,488,056	1,000,000,000
BMO CAPITAL MARKETS CORP
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $30,906,438, 2.83% - 5.50%, due 07/01/21 - 05/20/69)		2.50%		07/01/19	30,006,250	30,000,000

₁₄

Schwab Government Money Funds | Semiannual Report

See financial notes

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
BNP PARIBAS SA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $226,091,675, 0.00% - 8.50%, due 07/18/19 - 03/01/49)		2.50%		07/01/19	221,046,042	221,000,000
BOFA SECURITIES INC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $231,750,000, 4.00%, due 10/01/47 - 04/01/49)		2.50%		07/01/19	225,046,875	225,000,000
JP MORGAN SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $154,500,000, 4.00% - 5.00%, due 05/20/44 - 05/20/49)		2.55%		07/01/19	150,031,875	150,000,000
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $257,500,000, 2.50% - 8.00%, due 03/20/26 - 06/20/49)		2.54%		07/01/19	250,052,917	250,000,000
Issued 06/26/19, repurchase date 07/03/19 (Collateralized by U.S. Government Agency Securities valued at $515,075,819, 2.50% - 6.50%, due 11/01/24 - 03/15/61)		2.65%		07/03/19	500,257,639	500,000,000
MIZUHO SECURITIES USA LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $341,960,000, 3.50% - 4.00%, due 04/01/34 - 10/01/48)		2.52%		07/01/19	332,069,720	332,000,000
RBC DOMINION SECURITIES INC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $32,925,003, 0.00% - 4.50%, due 07/18/19 - 10/20/48)		2.50%		07/01/19	32,006,667	32,000,000
Issued 05/22/19, repurchase date 07/12/19 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $307,042,068, 2.25% - 4.50%, due 02/28/21 - 05/15/49)		2.40%		07/05/19	300,880,000	300,000,000
ROYAL BANK OF CANADA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $180,287,402, 2.50% - 5.00%, due 02/01/28 - 06/01/51)		2.49%		07/01/19	175,036,313	175,000,000
Issued 06/06/19, repurchase date 08/01/19 (Collateralized by U.S. Government Agency Securities valued at $179,889,088, 2.70% - 6.50%, due 07/15/28 - 07/25/49)		2.40%		07/05/19	174,336,400	174,000,000
Issued 06/13/19, repurchase date 07/15/19 (Collateralized by U.S. Government Agency Securities valued at $426,297,499, 2.42% - 6.50%, due 04/01/25 - 10/25/58)		2.40%		07/05/19	413,605,733	413,000,000
Issued 06/17/19, repurchase date 07/12/19 (Collateralized by U.S. Government Agency Securities valued at $103,170,951, 2.94% - 4.70%, due 10/01/28 - 04/01/49)		2.39%		07/05/19	100,119,500	100,000,000

₁₅

Schwab Government Money Funds | Semiannual Report

See financial notes

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 06/19/19, repurchase date 07/12/19 (Collateralized by U.S. Government Agency Securities valued at $51,578,638, 2.84% - 4.70%, due 10/01/28 - 06/20/49)		2.39%		07/05/19	50,053,111	50,000,000
WELLS FARGO SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Government Agency Securities valued at $757,278,996, 2.32% - 6.74%, due 07/25/19 - 04/01/49)		2.52%		07/01/19	728,152,880	728,000,000
Issued 06/26/19, repurchase date 07/03/19 (Collateralized by U.S. Government Agency Securities valued at $379,788,219, 2.50% - 5.00%, due 12/01/28 - 01/01/49)		2.55%		07/03/19	365,180,979	365,000,000
						5,863,353,255
U.S. Treasury Repurchase Agreements 18.7%
BANK OF NOVA SCOTIA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $629,468,531, 0.13% - 6.63%, due 08/31/19 - 11/15/48)		2.45%		07/01/19	617,125,971	617,000,000
BARCLAYS BANK PLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $73,455,338, 1.75%, due 12/31/20)		2.50%		07/01/19	72,015,000	72,000,000
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $1,163,748,550, 1.25% - 3.00%, due 01/31/21 - 08/15/47)		2.40%		07/01/19	1,140,929,870	1,140,701,730
BNP PARIBAS SA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $479,499,134, 0.00% - 3.38%, due 07/18/19 - 08/15/46)		2.48%		07/01/19	470,097,133	470,000,000
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK SA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $550,913,917, 0.13% - 3.75%, due 04/15/22 - 05/15/44)		2.48%		07/01/19	540,111,600	540,000,000
JP MORGAN SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $510,000,021, 1.00% - 3.13%, due 07/31/19 - 02/15/47)		2.53%		07/01/19	500,105,417	500,000,000
Issued 06/19/19, repurchase date 12/19/19 (Collateralized by U.S. Treasury Securities valued at $153,092,276, 0.38% - 3.00%, due 05/31/20 - 02/15/48) (SOFR + 0.03%)	(a)	2.45%	07/01/19	09/26/19	151,010,625	150,000,000
ROYAL BANK OF CANADA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $357,073,512, 1.13% - 2.75%, due 09/30/20 - 01/15/21)		2.47%		07/01/19	350,072,042	350,000,000

₁₆

Schwab Government Money Funds | Semiannual Report

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Schwab Government Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	1/1/19-6/30/19		1/1/18-12/31/18
Net investment income		$206,674,177	$255,713,787
Net realized gains	+	—	220,847
Increase in net assets from operations		206,674,177	255,934,634
Distributions to Shareholders
Sweep Shares		(109,899,944)	(195,679,650)
Investor Shares	+	(96,774,233)	(60,062,321)
Total distributions		($206,674,177)	($255,741,971)
Transactions in Fund Shares*
Shares Sold
Sweep Shares		40,931,773,700	95,802,789,585
Investor Shares	+	10,484,831,127	13,491,195,200
Total shares sold		51,416,604,827	109,293,984,785
Shares Reinvested
Sweep Shares		102,514,549	195,662,792
Investor Shares	+	65,328,978	44,119,643
Total shares reinvested		167,843,527	239,782,435
Shares Redeemed
Sweep Shares		(40,996,974,198)	(109,997,660,483)
Investor Shares	+	(7,588,669,077)	(7,026,283,536)
Total shares redeemed		(48,585,643,275)	(117,023,944,019)
Net transactions in fund shares		2,998,805,079	(7,490,176,799)
Net Assets
Beginning of period		19,196,454,386	26,686,438,522
Total increase or decrease	+	2,998,805,079	(7,489,984,136)
End of period		$22,195,259,465	$19,196,454,386

*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.

₂₀

Schwab Government Money Funds | Semiannual Report

See financial notes

Schwab U.S. Treasury Money Fund

Financial Statements

Financial Highlights

Investor Shares	1/1/19*– 6/30/19	1/17/18 ¹– 12/31/18
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.01	0.02
Net realized and unrealized gains (losses)	0.00 ³	(0.01) ⁴
Total from investment operations	0.01	0.01
Less distributions:
Distributions from net investment income	(0.01)	(0.01)
Distributions from net realized gains	—	(0.00) ³
Total distributions	(0.01)	(0.01)
Net asset value at end of period	$1.00	$1.00
Total return	1.01% ⁵	1.40% ⁵
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.35% ⁶	0.35% ⁶
Gross operating expenses	0.50% ⁶	0.49% ⁶
Net investment income (loss)	2.04% ⁶	1.64% ⁶
Net assets, end of period (x 1,000,000)	$4,898	$3,414

*	Unaudited.

Commencement of operations.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

⁴

The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of fund transactions in relation to fluctuating market values.

⁵

Not annualized.

⁶

Annualized.

₂₁

Schwab Government Money Funds | Semiannual Report

See financial notes

Schwab U.S. Treasury Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

For fixed-rate obligations, the rate shown is the coupon rate (the rate established when the obligation was issued) and if the coupon rate is not available, the effective yield at the time of purchase is shown. For variable-rate obligations, the rate shown is the interest rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The date shown in the maturity date column below is either the date on which the principal amount must be paid or the date payment must be made pursuant to a demand feature. If the security’s structure includes one of a number of maturity-shortening provisions set forth in Rule 2a-7, such as an interest rate reset, demand feature or put feature, the effective maturity date is also disclosed. If the effective maturity and maturity date are the same, the date will only appear in the maturity date column.

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 115.1% of net assets
U.S. Treasury Debt 115.1%
UNITED STATES TREASURY		2.30%		07/02/19	31,113,000	31,111,012
		2.32%		07/02/19	1,100,000,000	1,099,929,136
		2.34%		07/02/19	4,395,000	4,394,716
		2.37%		07/05/19	15,981,000	15,976,813
		2.30%		07/09/19	150,000,000	149,923,500
		2.31%		07/09/19	650,000,000	649,666,333
		2.09%		07/16/19	36,000	35,969
		2.11%		07/16/19	2,675,000	2,672,648
		2.12%		07/16/19	40,000,000	39,964,700
		2.20%		07/16/19	400,000,000	399,633,427
		2.25%		07/16/19	500,000,000	499,532,292
		2.11%		07/23/19	75,000,000	74,903,635
		2.14%		07/23/19	600,000,000	599,215,150
		2.29%		07/23/19	70,000,000	69,902,467
		2.10%		07/30/19	500,000,000	499,183,139
		2.11%		07/30/19	500,000,000	499,180,416
		2.13%		07/30/19	75,000,000	74,875,750
		0.88%		07/31/19	107,000,000	106,868,855
		1.38%		12/15/19	182,000,000	181,295,323
		1.13%		12/31/19	64,000,000	63,587,887
		1.63%		12/31/19	100,737,000	100,439,017
		1.88%		12/31/19	49,000,000	48,867,920
		1.38%		01/15/20	225,000,000	223,941,178
		1.25%		01/31/20	65,000,000	64,599,648
		1.38%		01/31/20	36,804,000	36,593,343
		2.00%		01/31/20	94,000,000	93,854,954
		1.38%		02/29/20	8,082,000	8,048,169
Total Fixed-Rate Obligations
(Cost $5,638,197,397)						5,638,197,397

₂₂

Schwab Government Money Funds | Semiannual Report

See financial notes

Schwab U.S. Treasury Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	1/1/19-6/30/19		1/1/18-12/31/18
Net investment income		$49,993,301	$131,125,914
Net realized gains	+	33,148	112,999
Increase in net assets from operations		50,026,449	131,238,913
Distributions to Shareholders1,2
Sweep Shares		(7,599,203)	(106,330,852)
Investor Shares	+	(42,394,098)	(24,821,392)
Total distributions		($49,993,301)	($131,152,244)
Transactions in Fund Shares*,1,2
Shares Sold
Sweep Shares		2,172,193,014	34,205,148,408
Investor Shares	+	4,924,004,244	5,385,048,230
Total shares sold		7,096,197,258	39,590,196,638
Shares Reinvested
Sweep Shares		7,437,144	106,316,569
Investor Shares	+	27,720,205	18,596,314
Total shares reinvested		35,157,349	124,912,883
Shares Redeemed
Sweep Shares		(6,174,391,422)	(45,853,787,196)
Investor Shares	+	(3,467,801,621)	(1,990,202,504)
Total shares redeemed		(9,642,193,043)	(47,843,989,700)
Net transactions in fund shares		(2,510,838,436)	(8,128,880,179)
Net Assets
Beginning of period		7,409,043,049	15,537,836,559
Total decrease	+	(2,510,805,288)	(8,128,793,510)
End of period		$4,898,237,761	$7,409,043,049

*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.
¹	Investor Shares commenced operations on January 17, 2018.
²	Effective April 10, 2019, the Sweep Shares were liquidated (see financial note 1).

₂₆

Schwab Government Money Funds | Semiannual Report

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Schwab Treasury Obligations Money Fund

Financial Statements

Financial Highlights

Investor Shares	1/1/19– 6/30/19*	1/1/18– 12/31/18	1/1/17– 12/31/17¹	1/1/16– 12/31/16	1/1/15– 12/31/15	1/1/14– 12/31/14
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)	0.01 ²	0.02 ²	0.01 ²	0.00 ²^,³	– ²	—
Net realized and unrealized gains (losses)	0.00 ³	(0.01) ⁴	0.00 ³	(0.00) ³	0.00 ³	(0.00) ³
Total from investment operations	0.01	0.01	0.01	0.00 ³	0.00 ³	(0.00) ³
Less distributions:
Distributions from net investment income	(0.01)	(0.01)	(0.01)	(0.00) ³	—	—
Distributions from net realized gains	—	—	(0.00) ³	—	—	—
Total distributions	(0.01)	(0.01)	(0.01)	(0.00) ³	—	—
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	1.04% ⁵	1.51%	0.58%	0.06%	—	—
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.35% ⁶	0.35%	0.33% ⁷^,⁸	0.30% ⁷	0.12% ⁷	0.07% ⁷
Gross operating expenses	0.48% ⁶	0.49%	0.54%	0.58%	0.59%	0.60%
Net investment income (loss)	2.09% ⁶	1.57%	0.65%	0.11%	0.00%	0.00%
Net assets, end of period (x 1,000,000)	$9,372	$7,545	$3,125	$692	$51	$60

*	Unaudited.

Effective October 3, 2017, the share class name of Value Advantage Shares was changed to Investor Shares.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

⁴

The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of fund transactions in relation to fluctuating market values.

⁵

Not annualized.

⁶

Annualized.

⁷

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation.

⁸

Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

₂₇

Schwab Government Money Funds | Semiannual Report

See financial notes

Schwab Treasury Obligations Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 14.8% of net assets
U.S. Treasury Debt 14.8%
UNITED STATES TREASURY		0.75%		07/15/19	125,000,000	124,918,323
		1.38%		12/15/19	100,000,000	99,615,449
		1.13%		12/31/19	207,400,000	206,068,605
		1.63%		12/31/19	82,000,000	81,737,610
		1.88%		12/31/19	374,000,000	373,055,320
		1.25%		01/31/20	250,000,000	248,345,857
		1.38%		01/31/20	67,000,000	66,600,889
		2.00%		01/31/20	186,000,000	185,711,039
Total Fixed-Rate Obligations
(Cost $1,386,053,092)						1,386,053,092

Variable-Rate Obligations 10.1% of net assets
U.S. Treasury Debt 10.1%
UNITED STATES TREASURY
(3 mo. Treasury Money Market Yield + 0.00%)		2.10%	07/01/19	01/31/20	66,000,000	65,978,104
(3 mo. Treasury Money Market Yield + 0.03%)		2.13%	07/01/19	04/30/20	99,000,000	98,943,892
(3 mo. Treasury Money Market Yield + 0.04%)		2.14%	07/01/19	07/31/20	562,000,000	561,706,345
(3 mo. Treasury Money Market Yield + 0.05%)		2.14%	07/01/19	10/31/20	75,000,000	74,938,203
(3 mo. Treasury Money Market Yield + 0.12%)		2.21%	07/01/19	01/31/21	143,300,000	143,202,472
Total Variable-Rate Obligations
(Cost $944,769,016)						944,769,016

₂₈

Schwab Government Money Funds | Semiannual Report

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Schwab Treasury Obligations Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 72.5% of net assets
U.S. Treasury Repurchase Agreements 72.5%
BANK OF MONTREAL
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $17,343,584, 1.88% - 3.13%, due 07/31/20 - 11/15/41)		2.48%		07/01/19	17,003,513	17,000,000
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $306,063,314, 0.63% - 3.00%, due 01/15/20 - 05/15/45)		2.48%		07/01/19	300,062,000	300,000,000
Issued 06/12/19, repurchase date 07/12/19 (Collateralized by U.S. Treasury Securities valued at $511,020,102, 0.00% - 4.25%, due 08/15/19 - 05/15/48)		2.40%		07/05/19	500,766,667	500,000,000
BANK OF NOVA SCOTIA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $118,344,213, 0.13% - 2.00%, due 12/31/20 - 01/15/26)		2.45%		07/01/19	116,023,683	116,000,000
BARCLAYS BANK PLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $3,051,224, 3.75%, due 11/15/43)		2.40%		07/01/19	2,991,303	2,990,705
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $698,845,653, 1.13% - 5.00%, due 02/28/21 - 02/15/43)		2.50%		07/01/19	685,142,708	685,000,000
Issued 06/24/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $255,123,960, 2.13% - 2.50%, due 08/15/21 - 03/31/23)		2.50%		07/01/19	250,121,528	250,000,000
BARCLAYS CAPITAL INC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $51,000,001, 2.50%, due 02/15/46)		2.50%		07/01/19	50,010,417	50,000,000
BNP PARIBAS SA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $721,289,074, 0.13% - 3.00%, due 05/31/20 - 02/15/48)		2.48%		07/01/19	707,146,113	707,000,000
Issued 06/20/19, repurchase date 08/13/19 (Collateralized by U.S. Treasury Securities valued at $716,495,453, 0.00% - 8.13%, due 07/18/19 - 02/15/48)		2.33%		07/05/19	700,679,583	700,000,000
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK SA
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $336,669,576, 2.13% - 3.63%, due 05/31/23 - 02/15/44)		2.48%		07/01/19	330,068,200	330,000,000
GOLDMAN SACHS & CO LLC
Issued 06/25/19, repurchase date 07/02/19 (Collateralized by U.S. Treasury Securities valued at $408,000,038, 0.00% - 0.88%, due 07/05/19 - 02/15/47)		2.50%		07/02/19	400,194,444	400,000,000
JP MORGAN SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $510,000,068, 1.38% - 3.00%, due 01/31/21 - 05/15/45)		2.53%		07/01/19	500,105,417	500,000,000

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Schwab Treasury Obligations Money Fund

Portfolio Holdings as of June 30, 2019 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $357,000,054, 0.13% - 6.00%, due 08/15/20 - 02/15/26)		2.53%		07/01/19	350,073,792	350,000,000
Issued 06/25/19, repurchase date 07/02/19 (Collateralized by U.S. Treasury Securities valued at $459,095,706, 0.00% - 8.75%, due 07/15/19 - 05/15/49)		2.50%		07/02/19	450,218,750	450,000,000
RBC DOMINION SECURITIES INC
Issued 05/24/19, repurchase date 07/24/19 (Collateralized by U.S. Treasury Securities valued at $256,032,690, 0.00% - 3.13%, due 07/18/19 - 08/15/45)		2.39%		07/05/19	250,697,083	250,000,000
Issued 05/22/19, repurchase date 07/12/19 (Collateralized by U.S. Treasury Securities valued at $153,518,101, 0.13% - 2.88%, due 04/15/20 - 05/15/43)		2.39%		07/05/19	150,438,167	150,000,000
ROYAL BANK OF CANADA
Issued 06/17/19, repurchase date 07/12/19 (Collateralized by U.S. Treasury Securities valued at $102,167,926, 0.13% - 2.13%, due 07/15/22 - 03/31/24)		2.37%		07/05/19	100,118,500	100,000,000
WELLS FARGO SECURITIES LLC
Issued 06/28/19, repurchase date 07/01/19 (Collateralized by U.S. Treasury Securities valued at $956,959,336, 0.00% - 3.00%, due 11/30/19 - 05/15/47)		2.50%		07/01/19	938,195,417	938,000,000
Total Repurchase Agreements
(Cost $6,795,990,705)						6,795,990,705

3 mo. U.S. Treasury Money Market Yield - The reference rate is the weekly auction stop for the 3 month U.S. Treasury Bill.

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See financial notes

Schwab Treasury Obligations Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	1/1/19-6/30/19		1/1/18-12/31/18
Net investment income		$92,073,139	$78,790,590
Net realized gains	+	13,351	1,156
Increase in net assets from operations		92,086,490	78,971,746
Distributions to Shareholders1
Sweep Shares		(377,268)	(4,631,083)
Investor Shares	+	(91,696,353)	(74,339,507)
Total distributions		($92,073,621)	($78,970,590)
Transactions in Fund Shares*,1
Shares Sold
Sweep Shares		114,290,563	2,181,721,325
Investor Shares	+	9,794,054,237	13,037,354,089
Total shares sold		9,908,344,800	15,219,075,414
Shares Reinvested
Sweep Shares		376,015	4,631,084
Investor Shares	+	56,684,658	48,845,278
Total shares reinvested		57,060,673	53,476,362
Shares Redeemed
Sweep Shares		(300,236,869)	(2,692,932,818)
Investor Shares	+	(8,023,424,398)	(8,666,193,809)
Total shares redeemed		(8,323,661,267)	(11,359,126,627)
Net transactions in fund shares		1,641,744,206	3,913,425,149
Net Assets
Beginning of period		7,730,118,834	3,816,692,529
Total increase	+	1,641,757,075	3,913,426,305
End of period		$9,371,875,909	$7,730,118,834

*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.
¹	Effective April 10, 2019, the Sweep Shares were liquidated (see financial note 1).

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Schwab Government Money Funds | Semiannual Report

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Schwab Government Money Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

THE CHARLES SCHWAB FAMILY OF FUNDS (ORGANIZED OCTOBER 20, 1989)
Schwab Government Money Fund	Schwab Variable Share Price Money Fund
Schwab U.S. Treasury Money Fund	Schwab Retirement Government Money Fund
Schwab Treasury Obligations Money Fund	Schwab Municipal Money Fund
Schwab Value Advantage Money Fund^®	Schwab AMT Tax-Free Money Fund
Schwab Retirement Advantage Money Fund^®	Schwab California Municipal Money Fund
Schwab Investor Money Fund^®	Schwab New York Municipal Money Fund

Schwab Government Money Fund offers two share classes: Sweep Shares and Investor Shares. Schwab U.S. Treasury Money Fund and Schwab Treasury Obligations Money Fund, each offer one share class, Investor Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums.

Effective April 10, 2019, the Sweep Shares of the Schwab U.S. Treasury Money Fund and Schwab Treasury Obligations Money Fund were liquidated.

2. Significant Accounting Policies:

(a) Security Valuation:

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

categorization is based on the lowest level input that is significant to the valuation. If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As disclosed in the Portfolio Holdings, as of June 30, 2019, all of the funds’ investments were classified as Level 2.

(b) Accounting Policies for certain Portfolio Investments (if held):

Repurchase Agreements: (Schwab U.S. Treasury Money Fund may not invest in repurchase agreements) In a repurchase agreement, a fund buys a security from another party (the counterparty), usually a financial institution, with the agreement that it be sold back in the future. Repurchase agreements subject a fund to counterparty risk, meaning that the fund could lose money if the other party fails to perform under the terms of the agreement. The funds mitigate this risk by ensuring that the funds’ repurchase agreements are collateralized by cash and/or U.S. government securities. These risks are magnified to the extent that a repurchase agreement is secured by collateral other than cash and U.S. government securities, such as debt securities, equity securities and high yield securities that are rated below investment grade. All collateral is held by the funds’ custodian (or, with multi-party agreements, the agent’s bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed or limited and the value of the collateral may decline. Investments in repurchase agreements are also based on a review of the credit quality of the repurchase agreement counterparty.

As of June 30, 2019, the following funds had investments in repurchase agreements with a gross value as disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities:

Schwab Government Money Fund	$10,008,054,985
Schwab Treasury Obligations Money Fund	6,795,990,705

The value of the related collateral disclosed in the Portfolio Holdings exceeded the value of the repurchase agreements at period end.

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(d) Investment Income:

(e) Expenses:

(f) Distributions to Shareholders:

(g) Accounting Estimates:

(h) Federal Income Taxes:

(i) Indemnification:

(j) Recent Accounting Standards:

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

3. Risk Factors:

Investment Risk. You could lose money by investing in the funds. Although each fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The funds’ sponsors have no legal obligation to provide financial support to the funds, and you should not expect that the sponsors will provide financial support to the funds at any time.

Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, a fund’s yield will change over time. During periods when interest rates are low, a fund’s yield (and total return) also will be low or may even be negative, which may make it difficult for the fund to pay expenses out of fund assets or maintain a stable $1.00 share price. A change in a central bank’s monetary policy or improving economic conditions may result in an increase in interest rates. The funds are currently subject to heightened levels of interest rate risk because of the continued economic recovery, along with the fact that the Federal Reserve Board ended its quantitative easing program in 2014, and has begun, and may continue, to raise interest rates. A sudden or unpredictable rise in interest rates may cause volatility in the market and may decrease liquidity in the money market securities markets, making it more difficult for a fund to sell its money market investments at a time when the investment adviser might wish to sell such investments. Decreased market liquidity also may make it more difficult to value some or all of a fund’s money market securities holdings.

Repurchase Agreements Risk. (Applies only to Schwab Government Money Market Fund and Schwab Treasury Obligations Money Fund) When a fund enters into a repurchase agreement, the fund is exposed to the risk that the other party (i.e., the counterparty) will not fulfill its contractual obligation. In a repurchase agreement, there exists the risk that, when a fund buys a security from a counterparty that agrees to repurchase the security at an agreed upon price (usually higher) and time, the counterparty will not repurchase the security.

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

can be no guarantee that they will produce the desired results. The investment adviser’s maturity decisions will also affect a fund’s yield, and potentially could affect its share price. To the extent that the investment adviser anticipates interest rate trends imprecisely, a fund’s yield at times could lag the yields of other money market funds.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Investment Adviser

Average Daily Net Assets
First $1 billion	0.35%
More than $1 billion but not exceeding $10 billion	0.32%
More than $10 billion but not exceeding $20 billion	0.30%
More than $20 billion but not exceeding $40 billion	0.27%
Over $40 billion	0.25%

For the period ended June 30, 2019, the aggregate advisory fees paid to CSIM by the funds, as a percentage of each fund’s average daily net assets were as follows:

Schwab Government Money Fund	0.31%
Schwab U.S. Treasury Money Fund	0.33%
Schwab Treasury Obligations Money Fund	0.32%

Shareholder Servicing

The Board has adopted a Shareholder Servicing and Sweep Administration Plan (the Plan) on behalf of the funds. The Plan enables each fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (Schwab), a broker-dealer affiliate of CSIM (together, service providers), of certain shareholder services to the current shareholders of the funds. The Plan also enables Sweep Shares of a fund to pay Schwab for certain sweep administration services, such as processing of automatic purchases and redemptions, it provides to fund shareholders invested in such funds based on the amounts set forth below.

Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to the amount set forth in the table below. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the funds (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the funds), and the funds will pay no more than the amounts listed in the table below calculated based on the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service providers. The sweep administration fee and shareholder servicing fee paid to Schwab are based on the average daily net asset value of a fund’s

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

shares owned by shareholders holding shares through Schwab. Payments under the Plan are made as described above without regard to whether the fee is more or less than the service provider’s actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.

	Shareholder Servicing Fee	Sweep Administration Fee
Schwab Government Money Fund
Sweep Shares*	0.15%	0.15%
Investor Shares	0.15%	n/a
Schwab U.S. Treasury Money Fund
Sweep Shares**	0.15%	0.15%
Investor Shares	0.15%	n/a
Schwab Treasury Obligations Money Fund
Sweep Shares**	0.15%	0.15%
Investor Shares	0.15%	n/a

* Effective July 1, 2019, the sweep administration fee of the Schwab Government Money Fund was reduced to 0.10%.

** Effective April 10, 2019, Sweep Shares of the Schwab U.S. Treasury Money Fund and Schwab Treasury Obligations Money Fund were liquidated.

Contractual Expense Limitation

Schwab Government Money Fund
Sweep Shares	0.70%
Investor Shares	0.35%
Schwab U.S. Treasury Money Fund
Sweep Shares**	0.55%
Investor Shares	0.35%
Schwab Treasury Obligations Money Fund
Sweep Shares**	0.60%
Investor Shares	0.35%

** Effective April 10, 2019, Sweep Shares of the Schwab U.S. Treasury Money Fund and Schwab Treasury Obligations Money Fund were liquidated.

Interfund Borrowing and Lending

5. Board of Trustees:

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Schwab Government Money Funds | Semiannual Report

Schwab Government Money Funds

Financial Notes, unaudited (continued)

6. Borrowing from Banks:

7. Federal Income Taxes:

As of June 30, 2019, the tax basis cost of the funds’ investments was as follows:

	Schwab Government Money Fund		Schwab U.S. Treasury Money Fund		Schwab Treasury Obligations Money Fund
Tax cost	$22,392,434,522		$5,949,526,808		$9,126,812,813

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of December 31, 2018, the funds had no capital loss carryforwards available to offset future net capital gains.

	Schwab Government Money Fund	Schwab U.S. Treasury Money Fund	Schwab Treasury Obligations Money Fund
Ordinary income	$255,741,971	$131,152,244	$78,970,590

8. Subsequent Events:

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Schwab Government Money Funds | Semiannual Report

Schwab Government Money Funds

Investment Advisory Agreement Approval

The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between The Charles Schwab Family of Funds (the Trust) and Charles Schwab Investment Management, Inc. (CSIM) with respect to the existing funds in the Trust, including Schwab Government Money Fund, Schwab U.S. Treasury Money Fund, and Schwab Treasury Obligations Money Fund (the Funds), and to review certain other agreements pursuant to which CSIM provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by CSIM, including information about CSIM’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. The Board also receives extensive data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. The Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees meet in executive session outside the presence of Fund management and participate in question and answer sessions with representatives of CSIM.

evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:

1.	the nature, extent and quality of the services provided to the Funds under the Agreement, including the resources of CSIM and its affiliates dedicated to the Funds;
2.	each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.	each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.	the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to CSIM and its affiliates; and
5.	the extent to which economies of scale would be realized as the Funds grow and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.

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Schwab Government Money Funds | Semiannual Report

Schwab Government Money Funds

resources of CSIM and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.

Fund Performance. The Board considered the Funds’ performance in determining whether to renew the Agreement with respect to the Funds. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of total return, yield, if applicable, and market trends, as well as in consideration of each Fund’s investment style and strategy attributes and disclosures. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of each Fund, the Trustees considered the risk profile for such Fund and each Fund’s operation as a government money market fund within the meaning of Rule 2a-7 under the 1940 Act. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and adviser profitability discussed below and also noted that performance is reviewed throughout the year by a designated committee of the Board and by the Board. Following such evaluation the Board concluded, within the context of its full deliberations, that the performance of the Funds supported renewal of the Agreement with respect to the Funds.

Fund Expenses. With respect to the Funds’ expenses, the Trustees considered the rate of compensation called for by the Agreement, and each Fund’s net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. CSIM reported to the Board, and the Board took into account, the risk assumed by CSIM in the development of products and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of CSIM’s and Schwab’s practice of waiving management and other fees to prevent total Fund expenses from exceeding a specified cap as well as historically using voluntary waivers to maintain a certain yield, which CSIM has committed not to recoup. The Trustees noted that CSIM had proposed, and the Board had approved, a reduction in the fee paid by the Schwab Government Money Fund’s Sweep Shares for sweep administration services. The Trustees also considered fees charged by CSIM to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services CSIM provides to these other accounts, as well as differences in the market for these types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Funds are reasonable and supported renewal of the Agreement with respect to the Funds.

Profitability. The Trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. In this connection, the Trustees reviewed management’s profitability analyses. The Trustees also reviewed profitability of CSIM relating to the Schwab fund complex as a whole, noting the benefit to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain fixed costs across other funds in the complex. The Trustees also considered any other benefits derived by CSIM from its relationship with the Funds, such as whether, by virtue of its management of the Funds, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the varied levels of compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to each Fund by CSIM and its affiliates. The Trustees noted that CSIM continues to invest substantial sums in its business in order to provide enhanced research capabilities, services, and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of CSIM is reasonable and supported renewal of the Agreement with respect to the Funds.

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Schwab Government Money Funds

Trustees and Officers

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds.	98	None
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Senior Fellow (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University.	98	Director (2005 – present), Gilead Sciences, Inc.
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services).	98	None
Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	CEO and Owner (May 2012 – present), Kochis Global (wealth management consulting).	98	None

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Schwab Government Money Funds

Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	98	Director (2003 – present), Symantec Corporation Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – present), Adamas Pharmaceuticals, Inc.
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Chief Investment Officer (2009-2017), CareGroup Healthcare System, Inc. (healthcare).	98	None
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses).	98	Director (2008 – present), KLA-Tencor Corporation
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Consultant (2008 – present), Patmore Management Consulting (management consulting).	98	None
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Chairman, Chief Executive Officer and Founder (Mar. 1990 – present), Smith Graham & Co. (investment advisors).	98	Director (2012 – present), Eaton

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Schwab Government Money Funds

Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010)	Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank; Director (Nov. 2017 – present), Charles Schwab Premier Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (July 2016 – present), Charles Schwab Investment Management, Inc.	98	Director (2008 – present), The Charles Schwab Corporation
Jonathan de St. Paer² 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Director and Chief Executive Officer (Apr. 2019 – present) and President (Oct. 2018 – present), Charles Schwab Investment Management, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.	98	None
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank; Director (Nov. 2017 – present), Charles Schwab Premier Bank; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.	98	None

Officers of the Trust
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Director and Chief Executive Officer (Apr. 2019 – present) and President (Oct. 2018 – present), Charles Schwab Investment Management, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.

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Schwab Government Money Funds

Officers of the Trust (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Mark Fischer 1970 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013)	Treasurer and Chief Financial Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management.
George Pereira 1964 Senior Vice President and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust since 2006; Schwab Strategic Trust since 2009)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present) and Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Operating Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Treasurer and Chief Financial Officer (June 2006 – Dec. 2015), Laudus Funds; Treasurer and Principal Financial Officer (Nov. 2004 – Dec. 2015), Schwab Funds; Treasurer and Principal Financial Officer (Oct. 2009 – Dec. 2015), Schwab ETFs; Director (Apr. 2005 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited.
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management.
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Fixed Income (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President (Sept. 2011 – present) and Vice President (Mar. 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present) and Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk (Apr. 2011 – present), Laudus Funds; Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009)	Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary (Oct. 2009 – present), Schwab ETFs.

¹	Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger, Mr. de St. Paer and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for the trusts in the Fund Complex, is an employee and director of Charles Schwab & Co., Inc. (CS&Co), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust, and is a director of CSIM. Mr. de St. Paer is an Interested Trustee because he owns stock of CSC and is an employee and director of CSIM. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of CS&Co.
³	The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.